Question
The value of a saving account earning interest after a few years is given by the equation:
y=1500(1+0.02)^3
Does this exponential equation represent an exponential growth or decay?
A.
Exponential decay
B.
Exponential growth
C.
Cannot be determined
y=1500(1+0.02)^3
Does this exponential equation represent an exponential growth or decay?
A.
Exponential decay
B.
Exponential growth
C.
Cannot be determined
Answers
GPT-4o mini
The equation given is:
\[ y = 1500(1 + 0.02)^3 \]
In this equation, the term \( (1 + 0.02) \) is greater than 1. When the base of the exponent is greater than 1, it indicates that the function represents exponential growth. Therefore, the value of the savings account will increase over time.
The correct answer is:
**B. Exponential growth**
\[ y = 1500(1 + 0.02)^3 \]
In this equation, the term \( (1 + 0.02) \) is greater than 1. When the base of the exponent is greater than 1, it indicates that the function represents exponential growth. Therefore, the value of the savings account will increase over time.
The correct answer is:
**B. Exponential growth**