Question

Which of the following is an exponential model that shows

an initial investment of $200 dwindling by 3% annually.
A. a(t) = 200(1+0.03)
B. a(t)= 200(1 – 0.03)
C. a(/) = 200(1-0.3)
D. alt)= 200(1-3)

Answer 1

Option A. a(t) = 200(1+0.03)

Explanation:

Given data

principal P= $200

rate r= 3%

time t= 1 year

Required

The final amount A

We know that the expression for the simple interest is given as

A=P(1+rt)

so the equivalent expression is

A. a(t) = 200(1+0.03)