Question

Jacob deposits $60 into an investment account with an interest rate of 4%, compounded annually. The equation,
y = 60(1 + 0.04)x, can be used to determine the number of years, x, it takes for Jacob's balance to reach a certain amount of money, y. Jacob graphs the relationship between time and money.

What is the y-intercept of Jacob's graph?
If Jacob doesn't deposit any additional money into the account, how much money will he have in eight years? Round your answer to the nearest cent.

Answer 1

Hi There!

I will be glad to help you with this problem.

I will get you started.

y = 60(1 + 0.04)^x = 60 * 1.04^x
At the y-intercept, x = 0:
y = 60 * 1.04^0
y = 60 * 1
y = 60

Then,
y = 60 * 1.04^8
y = 60 * 1.3685690504052736
(Please multiply that part!)
y = ????

Hint:

The y-intercept of Jacob's graph is...

In eight years Jacob will have...

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Please feel free to post your response and someone may probably check it.

Answer 2

y = 60(1 + 0.04)^x = 60 * 1.04^x
At the y-intercept, x = 0:
y = 60 * 1.04^0
y = 60 * 1
y = 60

Therefore the y-intercept is 60.

In order to see how much he'll have in his account after 8 years you must substitute 8 into the equation.

y = 60 * 1.04^8
y = 60 * 1.3685690504052736
y = 82.11 (rounded to the nearest hundredth)

Jacob will have $82.11 in his investment account after 8 years.


If I'm being honest I'm mostly just guessing but you can check if you want.