Question

20 POINTS!!!!

Jacob deposits $60 into an investment account with an interest rate of 4%, compounded annually. The equation,
y = 60(1 + 0.04)x, can be used to determine the number of years, x, it takes for Jacob's balance to reach a certain amount of money, y. Jacob graphs the relationship between time and money.

1. What is the y-intercept of Jacob's graph?
2. If Jacob doesn't deposit any additional money into the account, how much money will he have in eight years? Round your answer to the nearest cent.

Answer 1

The y-intercept of Jacob's graph is $60, which represents the initial amount of money he deposited into the account.

If Jacob doesn't deposit any additional money into the account, the amount of money he will have in eight years can be found by plugging in x=8 into the equation y = 60(1 + 0.04)^x and evaluating:

y = 60(1 + 0.04)^8

y ≈ $82.08

So the answer to the second question is that Jacob will have approximately $82.08 in the account after eight years, assuming he doesn't deposit any additional money into the account.

Hope this helps,
Ariana :)

Answer 2

1. 60 is his y-intercept

2. $82.11 in his account after 8 years