Question

Mr. Valdez puts $10,000 in a retirement account and does not make any deposits or withdrawals. The table below shows the amount of money in the account after x years.

A 2-column table with 5 rows. The first column is labeled years with entries 0, 10, 20, 30, 40. The second column is labeled amount (dollar sign) with entries 10,000; 16,000; 27,000; 43,000; 70,000.
What values, rounded to the nearest hundredth, complete the exponential regression equation that models the data?

Answer 1

The exponential regression (y = a·b^x) fit is

A(x) ≈ 9974.73 · (1.05)^x

(rounded to the nearest hundredth: a = 9974.73, b = 1.05).