Question

Braden invested $900 in a mutual fund. Each year, Braden's investment grew by 2%.Which equation calculates y, the value of Braden's investment after 4 years?

Answer 1

Answer:

$y=900\cdot1.02^4$

Explanation:

An exponential growth function is generally given in the form;

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

where a = initial investment amount = $900

r = percentage rate of growth in decimal = 2% = 2/100 = 0.02

x = time period = 4 years

Let's go ahead and substitute the above-given values into the exponential growth function;

$\begin{gathered} y=900(1+0.02)^4 \\ y=900(1.02)^4 \\ y=900\cdot1.02^4 \end{gathered}$