Exponential Equations in Financial Contexts — Quiz
Question 6 • Financial Math
An investment has an annual interest rate of 3.6% and is compounded monthly. One investor starts with $45,000 , and an adviser recommends reviewing the investment when the value reaches $46,229.68 Which equation can the investor use to find the length of time before the account grows to this amount?
Answer
A
46 comma 229 point 6 8 is equal to 45 comma 000 times open paren 1 plus 0 point 0 3 6 over 12 close paren raised to the 12 t power
B
45 comma 000 is equal to 46 comma 229 point 6 8 times open paren 1 plus 0 point 0 3 6 over 9 close paren raised to the 12 t power
C
46 comma 229 point 6 8 is equal to 45 comma 000 times open paren 1 plus 0 point 0 3 6 over 9 close paren to the t th power
D
45 comma 000 is equal to 46 comma 229 point 6 8 times open paren 1 plus 0 point 0 3 6 over 12 close paren to the t th power