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15 votes
15 votes
An investment of $4000 is increasing on average 3.8%yrexponential model y=

User Dalton Conley
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1 Answer

13 votes
13 votes

Given:

Initial amount = $4000

Rate of increase = 3.8% per year

Let's write the exponential function that represents this situation.

The exponential function will be an exonential growth function since the rate is increasing.

Apply the exponential growth formula:


y=a(1+r)^x

Where:

a is the initial amount = 4000

r is the average rate of increase = 3.8% ==> 0.038

Thus, we have:


y=4000(1+0.038)^x

Therefore, the exponential model that represents this situation is:


y=4000(1+0.038)^x

ANSWER:


y=4000(1+0.038)^x

User Fanie
by
3.0k points
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