Question

Chen is opening a new account with a $1,200 deposit. She will be keeping money in the account, compounded monthly for no more than 3 years. the formula gives the value, V, of the account as a function of time, t. Which is a reasonable domain of this function?V(t)= 1,200(1 + 0.02)^t/12A) 0< or equal to t < or equal to 36B) 0C) 0 < or equal to t < or equal to 1,273.45D) 1,200 < or equal to t < or equal to 1,273.45

Answer 1

The Solution:

Given the function:

`V(t)=1200(1+0.02)^{(t)/(12)}`

We are required to find a reasonable domain for the given function.

The domain of the function V(t) is the range of values for t.

The question says Chen is will continue to keep money in the account for not more than 3 years, but the interest will be compound monthly.

Recall:

1 year = 12 months

So,

3 years will be

`12*3=36\text{ months}`

This means that the range of values for t is:

`0\leq t\leq36`

Therefore, the correct answer is [option A]