Question

Shota invests $2000 in a certificate of deposit that earns 2%, percent in interest each year. Write a function that gives the total value V(t) in dollars, of the investment t years from now.

Answer 1

For this case we have a function of the form:
 y = A (b) ^ t
 Where,
 A: initial amount
 b: growth rate
 t: time
 Substituting values we have:
 V (t) = 2000 (1.02) ^ t
 Answer:
 a function that gives the total value V (t) in dollars, of the investment t years from now is:
 V (t) = 2000 (1.02) ^ t

Answer 2

The value after t years will be given by compound interest formula given by:
A=P(1+r)^n
where:
A=future value
P=principle
r=rate
n=number of years
Thus plugging in our values we get:
V(t)=2000(1+2/100)^t
simplifying this gives us:
V(t)=2000(1.02)^t

Answer: V(t)=2000(1.02)^t