Question

In 2001, a principal of $4200 was invested at 5.75% interest, compounded annually.Lett be the number of years since 2001. Let y be the value of the investment, in dollars.Write an exponential function showing the relationship between y and t.

Answer 1

Given:

P=$4200

r=5.75%

n=1 because of same year

Required:

We have to find the exponential function showing the relationship between y and t

Step-by-step explanation:

By applying the formula of compound interest which is given below

`y=P^(1+(r)/(n))^(nt)^`

where y is the value of investment at the end of the year

now put the all values in formula

`y=4200(1+(0.0575)/(1))^t`

Final Answer:

`y=4200(1.0575)^t`

be the exponential function between y and t