The function g (r) = 275(1.032)^n models the sequence of the end-of-year balance of an investment account with a principal of
$275 and a 3.2 percent compound annual interest rate, in which n is the length of the investment in years. Find the balance of the account after 13 years.
A. $10,157.66
B. $3,689.40
C. $401.31
D. $414.16
To find the balance of the account after 13 years, we plug in n = 13 into the formula g (r) = 275(1.032)^n:
g(13) = 275(1.032)^13
g(13) = 275(1.48516313)
g(13) = 408.92186175
Therefore, the balance of the account after 13 years is $408.92.
The closest answer choice is C. $401.31.