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 5th graders response
sentences, identify the key features of the graph and interpret the meaning of the data.

Answer 1

The graph starts at $3,000 when t = 0, which shows Andrea’s original investment. Because the value increases 14% each year (multiply by 1.14), after one year she will have $3,000 × 1.14 = $3,420 and the graph curves upward and gets steeper each year. The graph only shows years after the investment, so the amount stays positive and keeps growing bigger and bigger if the 14% growth continues.