TabWindowHélpsponseThe 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 isdeposited into the account at the end of the year.A. Assuming that no withdrawals or deposits are made, write an equation thatmodels the account balance after x years.Your answerB. What is the account balance at the end of the 10 years?Your answerC. Create a graph that shows the increase in the account balance over the next20 years, including your initial deposit.Your answerD. Using the graph, estimate how many years it will take for the initial deposit todouble.Your answerE. If you deposited $2000 in an account of this type, what would the accountbalance be when you are 45 years old assuming that you are 18 years of age rightnow?

Future value is the value that will become after some years when invested somewhere. It is the value…

Answered: A. Assuming that no withdrawals or…

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

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

Problem 1PS

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Question

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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