We have been given that Greg budgeted carefully and by the time he turned 30 his retirement account balance was $22,000. We are asked to find the amount in Greg's account after 60 years if the amount grew at a rate of 10% per year.
We will use exponential growth function to solve our given problem.
[tex]y=a\cdot (1+r)^x[/tex], where,
y = Final amount after t years,
a = Initial amount,
r = Growth rate in decimal form,
x = Time.
[tex]10\%=\frac{10}{100}=0.10[/tex]
[tex]y=\$22,000(1+0.10)^{65-30}[/tex]
[tex]y=\$22,000(1.10)^{35}[/tex]
[tex]y=\$22,000(28.1024368480642479)[/tex]
[tex]y=\$618253.6106574\approx \$618,253.6[/tex]
Therefore, there will be approximately $618,253.6 in Greg's account.
