Question

Jon places $6,500 in his bank account that grows at a rate of 3% per year.

Write a function (equation) that models this relationship. (2 points).

The function (equation) that models this relationship is

Answer 1

Explanation:

When interest compounds once per year, the formula for this is

`A(t)=P(1+r)^t` where P is the initial investment, r is the interest rate at which it grows, and t is the time in years. Therefore, our model is

`A(t)=6500(1+.03)^t` or simplified a bit:

`A(t)=6500(1.03)^t`