Question

exponential functions - basic
score: 0/2 penalty: none
question
4400 dollars is placed in an account with an annual interest rate of 8.25%. how much will be in the account after 22 years, to the nearest cent?
answer attempt 1 out of 2
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Explanation:

Step1: Identify compound interest formula

Assuming annual compounding (standard for such problems), the formula for compound amount is:
$$A = P(1 + r)^t$$
Where:

• $P = 4400$ (principal amount),
• $r = 0.0825$ (annual interest rate, 8.25% converted to decimal),
• $t = 22$ (time in years)

Step2: Substitute values into formula

$$A = 4400(1 + 0.0825)^{22}$$

Step3: Calculate the growth factor

First compute $1 + 0.0825 = 1.0825$, then:
$$1.0825^{22} \approx 5.6503$$

Step4: Compute final account value

$$A = 4400 \times 5.6503 \approx 24861.32$$

Answer:

$\$24861.32$