Question

Interpreting and Using Exponential Expressions: Practice

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Question 2 of 5
Harold decides to invest some of his salary in a savings account which compounds interest semiannually. His account balance after
t years can be given by the following expression
7,021(1.035) 27
What does the base, 1.035, represent?
the growth factor which reveals the rate at which the account balance increases
amount of the yearly savings
the initial amount invested
the number of times the account interest has compounded
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Answer 1

Explanation:

32

Answer 2

Explanation:

The given exponential expression takes on the following form.

In this expression, a is the initial amount, b is the growth or decay factor, and x is the independent variable. If 0 < b < 1, then the expression represents decay, and if b > 1, then it represents growth.

Therefore, the base, 1.035, represents the growth factor which reveals the rate at which the account balance increases.