Question

When Bob was born, his parents put $500 in an account to start saving money for college. Until now, the account has grown by about 6% annually. Assuming the same growth continues, you can use a function to describe the amount of money in the account when Bob is x years old.
Write an equation for the function. If it is linear, write it in the form g(x)=mx+b. If it is exponential, write it in the form g(x)=a(b)x.

Answer 1

This is exponential growth (6% per year).
g(x) = 500(1.06)^x

(Here g(x) is dollars in the account when Bob is x years old.)