Question

Leticia invests $200 at 5% interest. If y represents the amount of money after x time periods, which describes the graph of the exponential function relating time and money?

Answer 1

Answer:

$y=200(1.05)^{x}$

Step-by-step explanation:

This is a compound interest problem. The principal is given as 200 and the interest rate as 5%. We can use the compound interest formula to determine the relationship between time and money;

$A=P(1+r)^{n}$

where;

A is the amount of money

P is the principal invested

r is the rate of interest

n is the time duration

Substituting the information given we have;

$y=200(1+\frac{5}{100})^{x}\\\\y=200(1.05)^{x}$

which is an exponential function

Find the attached for the graph of this exponential function.