Question

The original value of an investment is $1400, and the value increases by 9%each year. Write am exponential growth function to model this situation. Then find the value of tje investment after 25 years

Answer 1

Let us create a model from the formula P(t) = P_0e^(kt).

P_0 = initial value

k = growth rate per year

t = time in years

Here is the model needed:

P(t) = 1400e^(25)(0.09).