Question

An investment of $4000 is increasing on average 3.8%yrexponential model y=

Answer 1

Given:

Initial amount = $4000

Rate of increase = 3.8% per year

Let's write the exponential function that represents this situation.

The exponential function will be an exonential growth function since the rate is increasing.

Apply the exponential growth formula:

$y=a(1+r)^x$

Where:

a is the initial amount = 4000

r is the average rate of increase = 3.8% ==> 0.038

Thus, we have:

$y=4000(1+0.038)^x$

Therefore, the exponential model that represents this situation is:

$y=4000(1+0.038)^x$

ANSWER:

$y=4000(1+0.038)^x$