Question

The function below represents the annual interest Charlotte earns on a savings account. Identify the term that represents the interest rate.

f(x) = 1,000(1 + 0.04)x

1,000
1
0.04
x

Answer 1

Explanation:

0.04

Answer 2

Answer: 0.04

Explanation:

The exponential growth equation is given by :-

`Y=a(1+r)^t` (1)

, where a is the initial value of , r is the rate of growth ( in decimal) and t is the time period.

Given : The function below represents the annual interest Charlotte earns on a savings account.
`f(x) = 1,000(1 + 0.04)^x` (2)

Comparing (1) and (2) , we get

`1+r=1+0.04`

Subtract 1 from both sides , we get r= 0.04

Hence, the term that represents the interest rate. =0.04