Question

a saving account earns interest at a rate of 7% each month. the initial balance is $100. write an exponential function b(m) to model the growth after m months.

Answer 1

Data:

Initial balance: c

intrest rate: r

time (months)=m

growth: b

c=$100

r=7%=0.07

To an exponential function you have the next general form:

`y=C(1+r)^t`

In this case

y=b(m)

C=c

r=r

t=m

`b(m)=100(1+0.07)^m`