Question

Britney invested $500 in stocks. After one year, the value of her stocks has increased to $530. Britney wants to use the growth from the first year to estimate future growth. Write an exponential equation in the form y=a(b)x that can model the estimated value of Britney's stocks, y, after x years. Use whole numbers, decimals, or simplified fractions for the values of a and b.

Answer 1

To model the estimated value of Britney's stocks after x years, we can use an exponential equation in the form y = a(b)^x.

Step-by-step explanation:

To model the estimated value of Britney's stocks after x years, we can use an exponential equation in the form y = a(b)^x. In this case, Britney invested $500 and the value of her stocks after one year increased to $530. To find the values of a and b, we can set up two equations:

1. $530 = $500(b)^1

2. Substitute y = $530 and x = 1 into the exponential equation y = a(b)^x

By solving these equations, we can find the values of a and b, which will give us the exponential equation that models the estimated value of Britney's stocks after x years.