Question

Tasha deposits money in a similar Certificate of Deposit account (CD). The balance in her account is described, with units as in Nick’s deposit, T(t)=650(1.03)tfor t ≥ 0. Use the structure of the expressions for N(t) and T(t) to describe how the two balances compare over time.

Answer 1

(1.06)0 = 1  and positive powers of 1.06 are larger than 1, thus the minimum value N(t) attains, if t≥0, is 400.

From the point of view of the context, a CD account grows in value over time so with a deposit of $400 the value will never drop to $399.