Roberta invested $600 into a mutual fund that paid 4% interest each year compounded annually. Write an exponential function of t

Answer:

The exponential equation can be expressed as A = 600(1.04)^15

After 15 years, the value of the mutual fund will be $1,081

Step-by-step explanation:

The worth of the mutual fund after a specific number of years can be represented by the compound interest formula shown below;

A = P(1 + r/n)^nt

In this formula, A stands for the mutual fund's value after 15 years, P represents the principal amount invested, which is $600, r denotes the interest rate at 4% or 0.04 (thus, 4% = 4/100 = 0.04), n indicates the number of times compounding occurs per year (in this case, it is done once a year), and t represents the number of years, which is 15.

Now, substituting in these values gives us;

A = 600(1 + 0.04/1)^15

A = 600(1.04)^15

A = $1,081 approximately

Answer:

y = 600*(1.04)^t

When t = 15: y = $1080.57

Step-by-step explanation:

The exponential formula y = a(b)x includes the following variables:

a: initial amount

b: rate of interest plus one

x: duration of the investment

Thus, with an initial investment of $600, an interest rate of 4%, and a duration of 15 years, the equation is:

y = 600*(1 + 0.04)^t = 600*(1.04)^t

Therefore, for a time span of t = 15 years, we find:

y = 600*(1.04)^15 = $1080.57