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Hi, I need help with this question. Pls, explain your answer.
Eric deposits $500 in a bank account that pays 3.5% interest, compounded yearly. Which type of function should he use to determine how much money he will have in the account at the end of 10 years?
(1) linear (3) absolute value
(2) quadratic (4) exponential

Respuesta :

mhanifa

Answer:

  • (4) exponential

Step-by-step explanation:

According to given, the function is:

  • A = P(1 + r)ⁿ

or

  • A = 500(1 + 3.5/100)¹⁰ = 500*1.035¹⁰

This is an exponential relationship

Correct choice is (4)

To determine the money Eric will have in his bank account, he needs to use an exponential function.

What is a compound interest?

This is a type of interest that is compounded after time period it is said to be compounded. After that particular period, the interest is calculated and then added with the principle. For the next duration, the interest is calculated on the sum.

Here, to find the amount of money after 10 years, we need to use the formula S = P(1 + r)ⁿ.

Here, S = sum of money after the total period of investment.

P = Principle = $500, r = rate of interest = 3.5%, n = time period = 10 years.

Now, S = $500(1 + 3.5/100)¹⁰ = $500(1 + 0.035)¹⁰ = $500(1.035)¹⁰ = $705.3

Hence, after 10 years, Eric will have $705.3 in his bank account.

Learn more about compound interest here: https://brainly.com/question/25857212

#Tag #SPJ2

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