Question

Nora inherited a savings account that was started by her grandmother 25 years ago. This scenario is modeled by the function A(t) 5000(1.013)t 25, where A(t) represents the value of the account, in dollars, t years after the inheritance. Which function below is equivalent to A(t)?

1) A(t)=5000[(1.013^t )]^25
2) A(t)=5000[(1.013)^t+(1.013)^25]
3) A(t)=(5000)^t(1.013)^25
4) A(t)=5000(1.013)^t(1.013)^25

Answer 1

`A(t)=5000(1.013)^(t25)\implies A(t)=5000(1.013)^(t\cdot 25)\implies A(t)=5000(1.013^t)^(25)`