Question

Karl has $400 in a savings account. The interest rate is 10%, compounded annually. Which type of model best fits this situation? A) linear B) radical C) quadratic D) exponential

Answer 1

Its D :::)))///////////

Answer 2

Exponential model best fits this situation.

Explanation:

Given : Karl has $400 in a savings account. The interest rate is 10%, compounded annually.

We have to determine which type of model best fits this situation.

Since, interest is calculated compounded

Using formula for compounded interest , we have,

`A=P(1+r)^n`

Where P is principal amount

n is time period

r is interest rate

We are given P = $ 400

and r = 10 % = 0.10

Substitute, we have,

`A=400(1+0.10)^n`

`A=400(1.10)^n`

Now this is an equation of the form
`a^x` which is exponential function.

So, exponential model best fits this situation.