Question

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)*, where A is the amount in the investment after t years. In 3 in a 8th graders response
sentences, identify the key features of the graph and interpret the meaning of the data.

Answer 1

The graph is an exponential curve that starts at $3,000 when t = 0 (the y‑intercept) and only includes t ≥ 0 because time can't be negative. The growth factor 1.14 means the investment increases by 14% each year, so after one year the amount is 3000(1.14) = $3,420 and after t years it is 3000(1.14)^t. Because it is exponential, the amount grows faster as time goes on (each year's increase is larger than the previous year's), and if the 14% rate continues the investment will keep getting larger over time.