Help me with the word problem please
1 answer:
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Answer:
a.
b .$914.85
Step-by-step explanation:
Step one:
given data
principal p=$750
rate= 5%= 0.05
for quarterly compounding n=4
a. the function that represents the balance after t years.
A = final amount
P = initial principal balance
r = interest rate
n = number of times interest applied per time period
t = number of time periods elapsed
b. when t=4
A= $914.85
Using an exponential function, it is found that it's annual growth rate is of 4%.
<h3>What is an exponential function?</h3>An increasing exponential function is modeled by:
In which:
- A(0) is the initial value.
- r is the growth rate, as a decimal.
In this problem, the card appreciates exponentially in value by 50% over 10 years, hence:
A(10) = 1.5A(0).
Thus:
1 + r = 1.04.
r = 0.04.
0.04 x 100% = 4%.
It's annual growth rate is of 4%.
More can be learned about exponential functions at brainly.com/question/25537936