Question

You decide to invest $250 in an account that yields a return of approximately 4% each year. if you were to write an exponential equation representing the situation, what would the initial value be?

a. 250
b. 1.04
c. 4
d. 104

Answer 1

The initial value in the exponential equation would be $250.

Step-by-step explanation:

An exponential equation representing the situation would be of the form:

A = P(1 + r)^t

Where:
A = final amount
P = initial amount
r = growth rate
t = time

In this case, the initial amount is $250 and the growth rate is approximately 4%, or 0.04. Thus, the exponential equation would be:

A = $250(1 + 0.04)^t