Question

In 2009, a principal of $3600 was invested at 3.75% interest, compounded annually. let t be the number of years since 2008. let y be the value of investment, in dollars. Write an exponential function showing the relationship between y and t.

Answer 1

3,600 x (1.0375) ^ 1

Explanation:

Compund interest formula.

IA * (r + 1) ^t

IA = Initial amount; r = rate (as decimal); t = time (in years)

IA = 3600

r = .0375

t = 1 (2008-2009)

3,600 x (1.0375)^1

-- Gage Millar, Algebra 1/2 Tutor, (Pending Pre-Calc Tutor)