Alexis invests $475 in a bank account that earns 1.25% interest compounded annually. Which function models the growth of her inv

Question

Ira Lisetskai [31]

3 years ago

15

Alexis invests $475 in a bank account that earns 1.25% interest compounded annually. Which function models the growth of her inv

estment over x years?

Mathematics

1 answer:

olchik [2.2K] · Answer 1 · 2022-04-13T23:43:14+03:00

Answer: The function that modes this situation would be: y = 475(1 + .0125)^x.

This is an example of an exponential equation. These equations are always in the form y = ab^x.

The a value is the starting value. The b value is the interest rate. The x value is the number of years.

The only thing to be careful about is the rate. We are adding 1.25% or 0.125. Make sure that you are adding 1 whole to the 1.25% and don't just use 0.125.