Andrea invested $3,000 in an online currency. If the value of the currency increases at a rate of 14% per year, the situation can be modeled using the equation A(t)=3,000(1.14)^t
, where A
is the amount in the investment after t years. In 3–5 sentences, identify the key features of the graph and interpret the meaning of the data.(2 points)
The key features of the graph of A(t)=3,000(1.14)^t are:
1) The graph is an exponential growth function, represented by the equation in the form of y = ab^x, where a is the initial value (3,000) and b is the growth factor (1.14).
2) The graph is increasing continuously, indicating that the investment is growing over time.
3) The rate of increase is 14% per year, which means the value of the investment is growing by 14% each year.
The data represents the future value of the investment after t years, showing how the initial investment of $3,000 grows exponentially with a 14% annual rate.