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 7th graders response
sentences, identify the key features of the graph and interpret the meaning of the data.

Answer 1

The graph is an exponential growth curve that starts at $3,000 when t = 0 and increases by 14% each year (growth factor 1.14). After one year the amount is $3,420 (3000 × 1.14) and the curve keeps rising faster as t increases. This means Andrea’s investment will grow steadily over time — roughly doubling in about 5 years — so the longer she leaves it, the more money she will have.