LeandrewP436120 LeandrewP436120
  • 03-11-2022
  • Mathematics
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Justin has $200 in a bank account that earns 3% in annual interest. Does this describe a linear or exponential function? Select the equation.

Justin has 200 in a bank account that earns 3 in annual interest Does this describe a linear or exponential function Select the equation class=

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KadejahF515089 KadejahF515089
  • 03-11-2022

Justin has $200 in a bank account that earns 3% in annual interest.

This can be modeled using an exponential function given by

[tex]f(x)=P(1+r)^x[/tex]

Where P is the invested amount, r is the interest rate in decimal, and x is the number of years.

For the given case,

P = $200

r = 3% = 0.03

So, the exponential function becomes

[tex]\begin{gathered} f(x)=200(1+0.03)^x \\ f(x)=200(1.03)^x \end{gathered}[/tex]

Therefore, the given situation describes an exponential function.

[tex]Exponential\colon f(x)=200(1.03)^x[/tex]

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