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Solve the Problem S=A((1+r)t+11r)S = A \left( \frac { ( 1 + r ) ^ { t } + 1 - 1 } { r } \right)

Question 206

Multiple Choice

Solve the problem.
-The formula S=A((1+r) t+11r) S = A \left( \frac { ( 1 + r ) ^ { t } + 1 - 1 } { r } \right) models the value of a retirement account, where A=A = the number of dollars added to the retirement account each year, r=\mathrm { r } = the annual interest rate, and S=\mathrm { S } = the value of the retirement account after t years. If the interest rate is 7%7 \% , how much will the account be worth after 15 years if $800\$ 800 is added each year? Round to the nearest whole number.


A) $22,310\$ 22,310
B) $2347\$ 2347
C) $12,800\$ 12,800
D) $35,316\$ 35,316

Correct Answer:

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