Answer:
a) growth
b) $500
c) 6% = 0.06
d)
e) $595.51
Step-by-step explanation:
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<u>Part (a)</u>
Exponential GROWTH, since interest is applied to the account each year.
<u>Part (b)</u>
Initial amount = $500
<u>Part (c)</u>
Growth factor = 6% = 0.06 (in decimal form)
<u>Part (d)</u>
General form of exponential growth function:
where:
- a = initial amount
- r = rate of growth (in decimal form)
- x = time (in years)
Given:
- a = 500
- r = 0.06
<u>Part (e)</u>
when x = 3