Question

The initial balance of a mutual fund is $1200. The fund is expected to grow in value at an annual rate of 2%.

Let x represent the number of years since the fund was started. Let y represent the value of the fund x years later.

What equation models the value of the mutual fund x years after it was started?

Answer 1

Answer:
`y=1200+0.02x`

Explanation:

Given: The initial balance of a mutual fund = $1200

The annual rate of growth = 2%

Let x represent the number of years since the fund was started.

Let y represent the value of the fund x years later.

Then the growth in fund each year=2% of x

⇒ The growth in fund each year=
`0.02x`

Thus the value of fund x years later (y)=
`1200+0.02x`

Hence, the equation models the value of the mutual fund x years after it was started is
`y=1200+0.02x`

Answer 2

1200 + .02x = y

The 1,200 has nothing done to and just added in the equation since it's the initial balance. The annual rate is 2% and in decimal form that's .02. x is years so years is multiplied by the 2% fee since the fee is annual. Then this equals the value of the fund x years later which is y. Hopefully all of that made sense XD
Happy Holidays!