Question

Sasha invests $1000 that earns 8% interest compounded annually. Write a function that describes the value, V, of the investment after t years.

Answer 1

`V(t)+1000(1.08)^(t)`

Explanation:

This function describes the value V of the investment after t years.

Answer 2

The function is defined as
`V = a (1 +r)^(t)` and Sasha investment of $1000 that earns 8% interest compounded annually becomes $1080 .

Step-step- Explanation:

As the function is defined by

`V = a (1 +r)^(t)`

Where a is the initial value , t is time in years and r is the rate of interest in the decimal form .

As given

Sasha invests $1000 that earns 8% interest compounded annually.

a = $1000

8% is written in the decimal form .

`= (8)/(100)`

= 0.08

t = 1 years

Putting all the values in the formula

`V = 1000(1 +0.08)^(1)`

`V = 1000(1.08)`

V = $1080

Therefore the function is defined as
`V = a (1 +r)^(t)` and Sasha investment of $1000 that earns 8% interest compounded annually becomes $1080 .