Question

Awarding more points!!
Sue invests in a money market account. The balance of the account in dollars after t years can be represented by the function.

5000(1.07)t = B

Answer the questions below:

a) What does the 5000 represent?

b) What is the annual percentage rate?

c) How much money will Sue have after 5 years?

Answer 1

Answer:

a) The 5000 represents the original amount of money in the account.

b) The annual percentage rate is 7%.

c) After 5 years, Sue will have $7012.76.

Step-by-step explanation:

a) The first number in an exponential function always represents the original amount.

b) The rate is the value inside the parentheses minus 1.

c) Plug in 7 as t to find the value.