Question

Consider an investment of $10,000 with interest of 5% compounded annually. Which statements are correct?

A)
This situation is modeled by an exponential function.
B)
In 5 years, the investment has a value of more than $12,762.
C)
This situation can be modeled by the function A = 1.05t + 10,000.
D)
This situation can be modeled by the function A = 10,000(1.05)
E)
It will take more than 20 years to double the value of the investment.

Answer 1

It is definitely E correct me if I’m wrong

Answer 2

E

Explanation:

10,000*0.05= 500, which is what you would earn in interest in a year.

Multiply that number by 20, which is the year you would double the investment.