carlos invests $7,000 in an account that earn...
carlos invests $7,000 in an account that earns 4.6% interest compounded annually. part a what type of function models the growth of the investment? a. linear b. quadratic c. exponential part b what will be the value of the investment in 10 years? a. about $10,975 b. about $3,220 c. about $73,220 d. about $7,733
Answer
# Explanation:
## Step1: Identify function type
The formula for compound - interest is $A = P(1 + r)^t$, where $P$ is the principal amount, $r$ is the annual interest rate (as a decimal), and $t$ is the number of years. This is an exponential function of the form $y = a\cdot b^x$ (here $a = P$, $b=(1 + r)$ and $x = t$). So for part A, the answer is exponential.
## Step2: Calculate investment value in 10 years
Given $P=\$7000$, $r = 0.046$ and $t = 10$. Use the compound - interest formula $A=P(1 + r)^t$. Substitute the values: $A = 7000\times(1 + 0.046)^{10}$. First, calculate $(1 + 0.046)^{10}\approx1.56785$. Then $A=7000\times1.56785\approx10974.95\approx10975$.
# Answer:
Part A: C. exponential
Part B: A. about $10,975