Question

An account with a $250 balance accrues 2% annually. If no deposits or withdrawals are made, which graph can be used to determine approximately how many years will it take for the balance to be $282?

Answer 1

Use the exponential growth graph y = 250(1.02)^t and the horizontal line y = 282. Their intersection gives t:

t = ln(282/250) / ln(1.02) ≈ ln(1.128) / ln(1.02) ≈ 6.07.

So about 6 years.