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A. Assuming that no withdrawals or deposits are made, write an equation that models the account balance after x years.

A. Assuming that no withdrawals or deposits are made, write an equation that models the account balance after x years.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Tab Window Hélp sponse The balance of an interest-bearing account can be modeled by an exponential equation. For example, consider an initial deposit of $2000 at an annual interest rate of 6%. The interest earned each year is deposited into the account at the end of the year. A. Assuming that no withdrawals or deposits are made, write an equation that models the account balance after x years. Your answer B. What is the account balance at the end of the 10 years? Your answer C. Create a graph that shows the increase in the account balance over the next 20 years, including your initial deposit. Your answer D. Using the graph, estimate how many years it will take for the initial deposit to double. Your answer E. If you deposited $2000 in an account of this type, what would the account balance be when you are 45 years old assuming that you are 18 years of age right now?
Transcribed Image Text:Tab Window Hélp sponse The balance of an interest-bearing account can be modeled by an exponential equation. For example, consider an initial deposit of $2000 at an annual interest rate of 6%. The interest earned each year is deposited into the account at the end of the year. A. Assuming that no withdrawals or deposits are made, write an equation that models the account balance after x years. Your answer B. What is the account balance at the end of the 10 years? Your answer C. Create a graph that shows the increase in the account balance over the next 20 years, including your initial deposit. Your answer D. Using the graph, estimate how many years it will take for the initial deposit to double. Your answer E. If you deposited $2000 in an account of this type, what would the account balance be when you are 45 years old assuming that you are 18 years of age right now?
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