Question

A person deposited $5,000 into a bank account and made no other withdrawals or deposits. Each year, 2.7% interest was added to the account.

Write an exponential function for the situation.

Answer 1

Let y be the amount of money in the bank account after t years, where t >= 0.

The exponential function for this situation is:

y = 5000 * (1 + 0.027)^t

This function models the amount of money in the bank account after t years, given the initial deposit of $5,000 and an annual interest rate of 2.7%.

Explanation: