Question

andrea invested $3,00 in an online currency, if the value of the currency increases at a rate of 14% per year, the situation can be modeled using the equation a(t)=3,000(1.14)t, where a is the amoount in the investment after t years. in3-5 sentences, identify the key features of the graph and interpret the meanibg of the data

Answer 1

The equation $a(t)=3,000(1.14{)}^t$ represents an exponential growth model for Andrea's investment in online currency. The key features of the graph include an initial value of $3,000 at $t=0$ and a steadily increasing curve that steepens over time due to the compound interest effect of the 14% annual growth rate. As $t$ increases, the amount $a(t)$ will rise rapidly, indicating that the investment will significantly increase in value over the years. This model illustrates how compound interest can lead to substantial growth in investments, highlighting the importance of time in the growth of investments.