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olga2289 [7]
2 years ago
12

a. Nick deposits money in a Certificate of Deposit account (CD). The balance (in dollars) in his account t years after making th

e deposit is given by N(t)=400(1.06)tfor t ≥ 0. Explain, in terms of the structure of the expression for N(t), why Nick's balance can never be $399.
Mathematics
1 answer:
ANEK [815]2 years ago
4 0

Answer:

(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.

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