The formula S $$S = A \left( \frac { ( 1 + r ) ^ { t + 1 } - 1 } { r } \right)$$ models the value of a retirement account, where A = the number of dollars added to the retirement account each year, r = the annual interest rate, and S = the value of the retirement
Account after t years. If the interest rate is 11%, how much will the account be worth after 15 years if $200 is
Added each year? Round to the nearest whole number.
A) $7838
B) $1053
C) $15,311
D) $3200

Question

Quizplus · Accepted Answer

The formula is S = A * ((1 + r)^(t + 1) - 1) / r.Plugging in the values, we get S = 200 * ((1 + 0.11)^(15 + 1) - 1) / 0.11 = $7838.

The Formula S S=A((1+r)t+1−1r)S = A \left( \frac { ( 1 + r ) ^ { t + 1 } - 1 } { r } \right)S=A(r(1+r)t+1−1​)

The Formula S $S = A \left( \frac { ( 1 + r ) ^ { t + 1 } - 1 } { r } \right)$