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nignag [31]
3 years ago
12

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

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

Mathematics
2 answers:
Keith_Richards [23]3 years ago
6 0

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

IrinaK [193]3 years ago
4 0

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.

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