I have a question about Exponential Growth. The problem is: You deposit $350 in an account that pays 9.5% interest compounded yearly. What is the balance after 6 years? I don't know how to write the equation for this. Does anyone have an idea what the equation might be?

Answer 1

the commonly used compound interest formula
Amount = Principal(1+i)^n is actually an exponential equation.
In your case
Principal = 350
i = .095 and
n = 6
so Amount = 350(1.095)^6
= $603.33