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
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:
which simplifies to
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:
which simplifies to
A(t) = 4000(1.2321) so
A(t) = 4928.40
