Question

Rewrite the following in a 5th graders response.

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 x 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.

Answer 1

The graph shows a curve that gets bigger faster and faster. At the start (t = 0) Andrea has $3,000. Each year it grows by 14%, which means you multiply by 1.14. After one year she has $3,420 because 3000 × 1.14 = 3420. The curve gets steeper as time goes on, so her money grows more and more. In about 5 years the investment will be about twice as big, so the longer she waits the more money she will have.