Question

Rewrite in a 7th graders response

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.

Answer 1

The graph shows the curve bending up and getting steeper — that means the amount grows faster and faster. At the start Andrea has $3,000. Each year it grows by 14%, so you multiply by 1.14. After one year she has 3,000 × 1.14 = $3,420. After two years you multiply by 1.14 again (3000 × 1.14 × 1.14), and so on. Because it keeps multiplying every year, the curve gets steeper and her money grows more and more. In about 5 years the investment will be almost twice as big (around $5,800–$6,000), so the longer she waits, the more money she will have.