Question

The initial balance of a mutual fund is $1800. The fund is expected to grow in value at an annual rate of 5%.

Let x represent the number of years since the fund was started. Let y represent the value of the fund x years later.

What equation models the value of the mutual fund x years after it was started?

Answer 1

Given
Initial balance 1800
Annual rate 0.05
Y the value of mutual fund
X time in years
The equation models the value of the mutual fund is
Y=1800 (1+0.05)^x
Y=1800 (1.05)^x...answer

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