Question

Michael has a bank account that he is using to save money to buy a new bike. He hopes to save more and more money each week. The equation that models the situation is y=50(1.5)^x where x is the number of weeks and y is the total amount of money he has saved. What do the 50 and 1.5 mean in the context of the situation? (Hint: One of the numbers involves a percent!)

Answer 1

50 is the initial bank account balance of $50

1.5 represents that his balance grows by 50% (1.5x) each month, or in other words that he deposits 50% of his previous month's balance into his account each month.