Question

write an exponential function to model the situation. you invest $1500. your investment increases at a rate of 5.5%.
$b(t) = 1500(1.965)^t$
$b(t) = 1500(0.55)^t$
$b(t) = 1500(1.055)^t$
$b(t) = 1500(0.965)^t$

Explanation:

Step1: Recall growth formula

The general exponential growth function is $B(t) = P(1 + r)^t$, where $P$ is principal, $r$ is growth rate, $t$ is time.

Step2: Identify given values

$P = 1500$, $r = 3.5\% = 0.035$

Step3: Substitute into formula

$B(t) = 1500(1 + 0.035)^t = 1500(1.035)^t$

Answer:

B(t) = 1500(1.035)^t (the option in the orange box)