Question

A principal of $1900 was invested at 3.75% interest, compounded annually. Let be the number of years since the start of the investment. Let y be the value of the investment, in dollars.
Write an exponential function showing the relationship between y and t?

Answer 1

Answer:

$y(t) = \ 1900*1.0375^t$

Step-by-step explanation:

If y is the future value of the $1900 investment, in dollars, after t years at a rate of 3.75% per year, compounded annually. The exponential function that describes the relationship between the variables y and t is:

$y(t) = \ 1900*(1.0375)^t$

This relationship means that for every year t, the amount y will increase by a factor of 1.0375.