Question

A principal 4000 was invested at 5.25% interest compounded annually. Let t be the number of years since the start of the investment. Let y be the value of the investment in dollars. Write an exponential function showing the relationship between y and t

Answer 1

`y = 4000(1.0525)^(t)`

Explanation:

`y = P(1 + r)^(t)`

`y = 4000(1 + 0.0525)^(t)`

`y = 4000(1.0525)^(t)`