Andrea invested $3,000 in online currency 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 amount in the investment after t years. In 3 to 5 sentences identify the key features of the graph and interpret the meaning of the data.

Question

Andrea invested $3,000 in online currency 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 amount in the investment after t years. In 3 to 5 sentences identify the key features of the graph and interpret the meaning of the data.

GPT-4o mini · Answer

The graph of the function $ A(t) = 3,000(1.14)^t $ displays exponential growth, illustrating how Andrea's investment increases over time. The key features include a starting value (y-intercept) of $3,000 at $ t = 0 $, and a steep upward curve as $ t $ increases, reflecting the 14% annual growth rate. This indicates that the investment not only grows in value but accelerates over time due to the compounding effect. After several years, the amount becomes significantly larger, showcasing the power of investing in an appreciating asset.