Question
A principal of
was invested at
interest, compounded annually.
Let
be the number of years since the start of the imvestment. Let
be the value of the investmert im folli
Write an exponential function showing the relationship betwoen
and
.
Let
Write an exponential function showing the relationship betwoen
Ask by Ward Harmon. in the United States
Mar 11,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
The exponential function is
.
Solution

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Mind Expander
The exponential function that represents the relationship between the value of the investment
and the number of years
can be expressed as:
or simplified to
This equation captures how the principal amount grows over time, thanks to the magic of compound interest.
If you’re curious about how this function relates to real-world investments, think of it this way: many savings accounts and investments work similarly. When you deposit money and allow it to compound, the interest earned in each period contributes to your total, leading to that exciting snowball effect called exponential growth! It’s like a financial snowball rolling downhill, collecting more snow (interest) as it goes!