Liz spent her summer break working at Wild Lakes waterpark. At the end of the summer, she put $570 of her earnings into a savings account that earns 1% interest each year.

Question

Write an exponential equation in the form y=a(b)x that can model the amount in Liz's account, y, x years after starting the account.
Use whole numbers, decimals, or simplified fractions for the values of a and b.
y =
To the nearest dollar, how much will be in the savings account after 7 years if Liz makes no other deposits or withdrawals?
$

Answer 1

y = 570(1.01)^x

After 7 years, the amount in the savings account will be:
y = 570(1.01)^7
y ≈ 598

Therefore, there will be approximately $598 in the savings account after 7 years.