Question

Colleen has put $26,000 into a retirement fund. the fund has an estimated annual return of 10%. if colleen doesn't add any more money, how much can she expect to have in the fund in 7 years?

if necessary, round your answer to the nearest cent

the answer is : 50,666.64

Answer 1

Using an exponential function, it is found that she can be expected to have $50,666.64 in the fund in 7 years.

What is an exponential function?

An increasing exponential function is modeled by:

$A(t) = A(0)(1 + r)^t$

In which:

• A(0) is the initial value.

• r is the decay rate, as a decimal.

In this problem, we have that the initial amount and the growth rate are given, respectively, by:

• A(0) = 26000.

• r = 0.1.

Hence the amount after t years is given by:

$A(t) = 26000(1.1)^t$

Then, after 7 years, the amount is:

$A(7) = 26000(1.1)^7 = 50,666.64$

More can be learned about exponential functions at https://brainly.com/question/25537936

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