Question

Daniel deposited $500 into a savings account and after 8 years, his investment is worth $807.07. The equation A = d(1.005)12t models the value of Daniel’s investment. Highlight all true statements that apply to the function represented by this scenario:

Never Increase
Constant
Increases
Exponential
Never Decrease
Never constant
Never steady
Linear


THANK YOU FOR HELPING!!!

Answer 1

Explanation:

The equation A = d(1.005)^12t modelling the value of Daniel’s investment shows a monthly compounded interest. This means that the interest is compounded 12 times in a year.

We can confirm by inputting the given values

t = 8 years

d = 509

Therefore,

A = 500(1.005)12 × 8

A = 500(1.005)^96

A = $807.07

Therefore, the true statements are

Increases

Exponential

Never Decrease