Answer: 100*(1.032)^t which can be written as [tex]b = 100*(1.032)^t[/tex]
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Explanation:
b = value of cup after t years
t = time in years (eg: t = 2 means 2 years have passed by)
The value starts at b = 100. After year 1, the value jumps up by 3.2% so we multiply the value $100 by 1.032 which is the proper multiplier to help increase by 3.2%; to see this, notice how 100% + 3.2% = 1 + 0.032 = 1.032
After 2 years, the value jumps another 3.2% so we have another copy of 1.032 multiplied. Then for 3 years, we'll have 3 copies of 1.032 multiplied. And so on.
For t years, we'll have t copies of 1.032 as the multiplier. So we will multiply the initial value 100 by (1.032)^t
That is why the equation is
b = 100*(1.032)^t
which can be written as [tex]b = 100*(1.032)^t[/tex]
