Question

Leticia invests $200 at 5% interest. If y represents the amount of money after x time periods, which describes the graph of the exponential function relating time and money?
The initial value of the graph is 200. The graph increases by a factor of 1.05 per 1 unit increase in time.
The initial value of the graph is 200. The graph increases by a factor of 5 per 1 unit increase in time.
The initial value of the graph is 500. The graph increases by a factor of 2 per 1 unit increase in time.
The initial value of the graph is 500. The graph increases by a factor of 1.02 per 1 unit increase in time.

Answer 1

The graph shows 200. And the factor down

Answer 2

Answer:

First you need to state the equation that represents the function.

Investment is $200 and interest rate is 5%, y is the amount of money after x periods.

Note that after 1 period the amount of money is 200 plus 5% interest, which is 200 + 5%(200) = 200 (1 +5%) = 200 (1 + 0.05) = 200 (1.05)

After 2 periods the amount is 200(1.05)*(1.05) = 200 (1.05)^2

After 3 periods the amount is 200 (1.05)^3

And now you can deduce that after x periods y = 200 (1.05)^x

You can then analyze the function to predict the shape and critical points of the graph.

The answers are based in the initial value and the increasing factor.

The initial value is when x = 0, which yields to y = 200 (1.05)^0 = 200*1 = 200

And the increasing factor is 1.05 because any value is the previos one times 1.05.

Step-by-step explanation: