Andrea invested $3,000 in an online currency. If the value of the currency increases at a rate of 14% per year, the situation can be modeled using the equation A(t)=3,000(1.14)t
, where A
is the amount in the investment after t years. In 3–5 sentences, identify the key features of the graph and interpret the meaning of the data
1 answer
The equation A(t) = 3,000(1.14)^t represents the exponential growth of Andrea's investment. The key features of the graph would be an upward-sloping curve starting at 3,000 and increasing rapidly over time. The rate of growth is 14% per year, which means that the investment will continue to grow exponentially. The data shows that the value of Andrea's investment will continue to increase significantly over time due to the compounding effect of the 14% annual growth rate.