So for this you will be using an exponential equation, which is [tex] y=ab^x [/tex] with a=initial value, b=growth/decay, y = total balance, and x = # of years
In this case, a = 500, and since with this problem the initial value is growing, you will add 100% to 6% to get 106%, or 1.06. The equation will be formed as such: [tex] y=500(1.06)^x [/tex]
With this problem, just plug in 15 into x and solve for y: [tex] y=500(1.06)^{15}\\ y=1198.28 [/tex]
In short, after 15 years Tom will have $1198.28 in his account.
