Question

Karl has $400 in a savings account. The interest rate is 10%, compounded annually. Which type of model best fits this situation?

Answer 1

Answer:

He prolly only got like 300 some left

Step-by-step explanation:

Answer 2

Answer:

This is an exponential model.

Step-by-step explanation:

The formula for compound interest is

$y=a(1+\frac{r}{n})^{nt}$, where a is the principal, r is the interest rate, n is the number of times per year the interest is compounded, and t is the number of years.

Since the number of years will be a variable, we have an equation raised to a power of x; this is an exponential function.

The equation for this would be

$y=400(1+\frac{0.1}{1})^{1t}\\\\y=400(1+0.1)^t\\\\y=400(1.1)^t$