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Wanda invested money in a savings certificate of deposit that earns 4% interest. Its value after 3 years can be found by evaluating (1.04)) and multiplying the result by the initial value. a. Describe how to simplify the exponential expression. b. The initial value of Wanda's account was $1,000. Simplify the exponential expression and interpret the result to describe how the value of Wanda's savings has changed after 3 years.​

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abidemiokin

There has been an increase in Wanda savings by $127.49 after 3 years

Exponential equation

The standard exponential equation is expressed as y = ab^x. They are inverse of logarithmic function.

For a deposit that earns 4% interest in its value after 3 years, we can determine the final amount on money invested using the formula below;

P(t) = P0e^rt

where

  • P0 is the amount invested
  • r is the rate (in %)
  • t is the time taken

Given the following parameters

P0 = $1000

r = 4% = 0.04

t = 3 years

Substitute

P(t) = 1000e^3(0.04)

P(t) = 1127.49

Interest = 1127.49 - 1000

Interest = 127.49

This shows that there has been an increase in Wanda savings by $127.49 after 3 years

Learn more on exponential function here: https://brainly.com/question/2456547

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