Hat logarithmic function represents the data in the table?
2 answers:
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Answer:
The value of the bond when Tyler's mom purchased it was $150
Step-by-step explanation:
we know that
In this problem we have a exponential function of the form
where
a is the initial value (y-intercept)
b is the base
r is the rate
b=(1+r)
In this problem
r=4%=4/100=0.04
b=1+0.04=1.04
substitute
where
x is the number of years since the savings bond was purchased
f(x) is the value of the savings bond
For x=1
f(x)=$156
substitute
Solve for a
therefore
The value of the bond when Tyler's mom purchased it was $150
To answer this, you use the formula where
is the simple interest that builds
is the principal (AKA the amount invested/borrowed)
is the interest rate per year
is the lenght of the loan, in years.
In your situation:
This means there'd be $450 of simple interest due at the end of 3 years.