Question

John recently purchased $4,106.00 worth of a stock that is expected to grow in value by 8% each year for the next ten years.Assuming this growth forecast holds, which function will show the value of John's stock in tyears?A(t) = 1.08(54,106)A(O) = 54,106(1.1)A(0) = 54,106(1.08)A(t) = $4,106(1.08)

Answer 1

The exponential growth formula:

`A(t)=A_0(1+r)^t`

Given:

`\begin{gathered} A_0=\text{ \$4106} \\ t=10yrs \\ r=8\%=(8)/(100)=0.08 \end{gathered}`

Therefore,

`A(t)=4106(1+0.08)^t=4106(1.08)^t`

Hence, the answer is

`A(t)=\text{ \$}4106(1.08)^t`