Question

Carlos invests $7,000 in an account that earns 4.6% interest compounded annually.

Part A
What type of function models the growth of the investment?
A. linear
B. quadratic
C. exponential
Part B
What will be the value of the investment in 10 years?
A. about $10,975
B. about $3,220
C. about $73,220
D. about $7,733

Answer 1

Part A: C. exponential — compound interest grows exponentially: A(t) = 7000(1 + 0.046)^t.

Part B: A. about $10,975 — A(10) = 7000(1.046)^10 ≈ 7000(1.5679) ≈ $10,975.