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

Question

2 years ago

12

A) linear B) radical C) quadratic D) exponential

2 answers:

Keith_Richards [23] · Answer 1 · 2022-06-16T12:14:24+03:00

6 0

Its D :::)))///////////

IrinaK [193] · Answer 2 · 2022-06-16T14:32:23+03:00

Answer:

Exponential model best fits this situation.

Step-by-step explanation:

Given : Karl has $400 in a savings account. The interest rate is 10%, compounded annually.

We have to determine which type of model best fits this situation.

Since, interest is calculated compounded

Using formula for compounded interest , we have,

$A=P(1+r)^n$

Where P is principal amount

n is time period

r is interest rate

We are given P = $ 400

and r = 10 % = 0.10

Substitute, we have,

$A=400(1+0.10)^n$

$A=400(1.10)^n$

Now this is an equation of the form $a^x$ which is exponential function.

So, exponential model best fits this situation.