Question

What is the exponential function of $2500 increased by 3.5% each year?

Answer 1

Answer: (i) A = 2500 ^(1.035)^n

(ii) A =$ 4,974.47

Step-by-step explanation:'

The exponential function is given as :

A = P

Where :

A = amount

P = principal

r = rate %

n = number of years

substituting , the exponential function to model the situation becomes

A = 2500 (

(ii) when n = 20 , the Amount becomes

A = 2500(

A =$ 4,974.47