Question

A savings account was opened with a $500 deposit. The function a(t) = 500 · (1.06)t models the value of the account, a(t), after a given number of years, t. What is the percent rate of change, and how is it interpreted in the context of the problem?

Answer 1

Explanation:

The percent rate of change is 6%.

This comes from the 1.06 in the formula.

- each year the new value is the previous years value plus 0.06 of the old value. 0.06 = 6 % .