The graph of the equation \( A(t) = 3000(1.14)^t \) represents an exponential growth function, where \( A(t) \) is the total amount of the investment after \( t \) years. The initial value of the investment at \( t = 0 \) is $3,000, which is the y-intercept of the graph. As time progresses, the graph shows a steep upward curve, reflecting the annual 14% increase in value, indicating that the investment grows more rapidly as time goes on. The growth of the investment becomes increasingly pronounced over the years, demonstrating the power of compound interest in generating significant returns over time.
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.(2 points)
1 answer