The answers are:
Part a: The money in the account is growing.
Part b: The rate of growth is 3%
Part c: The value 250 represents the starting amount of money.
<h2>Why?</h2>To solve the problem, first, we must remember the structure of the exponential growth or decay function:
Where,
- Start Amount, is the starting value or amount
- Rate, is the rate of growth or decay, we must consider the following conditions:
If the rate is greater than 1, the rate is a growth rate.
If the rate is lower than 1, the rate is a decay rate.
- t, is the time elapsed.
Therefore, we are given the following function:
From the function we can see that:
- Since the rate is 1.03 and it's greater than 1, the money in the account is growing.
- From the function we already know that the rate of growth is equal to 1.03
The rate is calculated by the following formula:
- The value 250 represents the starting amount of money.
Hence, the answers are:
Part a: The money in the account is growing.
Part b: The rate of growth is 3%
Part c: The value 250 represents the starting amount of money.
Have a nice day!