Question

INVESTING Maria invests $1000 in a savings account that pays 4% interest compounded annually. The value of the account A at the end of five years can be determined from the equation log10 A = log10[1000(1 + 0.04)5]. Write this equation in exponential form

Answer 1

`A=1000(1+0.04)^5`

Explanation:

-The general expression of an exponential function is :

`A=P(1+r)^n`

where:

• 
  `A` is the amount after time t.
• 
  `P` is the initial amount
• 
  `r` is the rate of growth
• 
  `t` is the time.

We substitute our parameter values in the equation as:

`A=1000(1+0.04)^5`