Answer:
Step-by-step explanation:
We first need to figure out what the equation is for this set of circumstances before we can answer any questions. We will use the equation
[tex]A(t)=P(1+r)^t[/tex] which is just another form of an exponential equation where
(1 + r) is the growth rate, P is the initial investment, and t is the time in years. We will fill in the values we know first to create the equation:
[tex]A(t)=4000(1+.11)^t[/tex] which simplifies to
[tex]A(t)=4000(1.11)^t[/tex]
Now we'll just sub in a 1 for t and solve, then a 2 for t and solve.
When t = 1:
A(t) = 4000(1.11) so
A(t) = 4440
When t = 2:
[tex]A(t)=4000(1.11)^2[/tex] which simplifies to
A(t) = 4000(1.2321) so
A(t) = 4928.40
