Question

Mark is using two functions to determine how much money he will have in his account after
t
years. He uses the constant function
f
(
t
)
=
2500
and an exponential function
g
(
t
)
=
1
.
05
t
to create a new function,
h
(
t
)
, which represents the value, in dollars, of his account earning interest.

Create the function
h
(
t
)
, and use it to determine the value of the account after 8 years. Round to the nearest dollar.

$2,625


$3,694


$20,000


$21,000

Answer 1

h(t) = 2500(1.05)^t.

h(8) = 2500(1.05)^8 ≈ 2500(1.4774554) ≈ 3693.64 → $3,694.