Question

Natalie has $5000 and decides to put her money in the bank in an account that has a 10% interest rate that is compounded continuously.
What type of exponential model is Natalie’s situation?
Write the model equation for Natalie’s situation
How much money will Natalie have after 2 years?
How much money will Natalie have after 10 years?

After 2 years i got, 6107.01. Is that right?

Answer 1

For 2 years not quite. (I used a interest calculator to check my answer.)

So the interest rate is 10%
So to calculate what you need to multiply the starting principle (the starting money) by do 1.10^2 (1.10 represents the intrest rate) (2 represents the years/how many times its compounded)
That should give you 1.21
Then multiply (1.12)(5000)
that will give you 6,050
For 10 years replace the years to 10
12,968.7

Answer 2

so, 5000*1.10^x is the model equation, right?
and what type of exponential model is it?