Question

In 2001, a principal of $4200 was invested at 5.75% interest, compounded annually.Lett be the number of years since 2001. Let y be the value of the investment, in dollars.Write an exponential function showing the relationship between y and t.

Answer 1

Given:

P=$4200

r=5.75%

n=1 because of same year

Required:

We have to find the exponential function showing the relationship between y and t

Explanation:

By applying the formula of compound interest which is given below

$y=P^(1+\frac{r}{n})^{nt}^$

where y is the value of investment at the end of the year

now put the all values in formula

$y=4200(1+\frac{0.0575}{1})^t$

Final Answer:

$y=4200(1.0575)^t$

be the exponential function between y and t