Question

Leticia invests $200 at 5% interest. If y represents the amount of money after x time periods, which describes the graph of the exponential function relating time and money?

Answer 1

A.) The initial value of the graph is 200. The graph increases by a factor of 1.05 per 1 unit increase in time.

Explanation:

correct on edge2020.

Answer 2

`y=200(1.05)^(x)`

Explanation:

This is a compound interest problem. The principal is given as 200 and the interest rate as 5%. We can use the compound interest formula to determine the relationship between time and money;

`A=P(1+r)^(n)`

where;

A is the amount of money

P is the principal invested

r is the rate of interest

n is the time duration

Substituting the information given we have;

`y=200(1+(5)/(100))^(x)\\\\y=200(1.05)^(x)`

which is an exponential function

Find the attached for the graph of this exponential function.