Andrea invested $3000 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 below, where A is the amount in the investment after t years. Pick the option below that has correctly identified the key features of the graph and interpreted the meaning of the data.
A (t) = 3,000(1.14)^t
A. The y-intercept is 3000, this represents the initial amount of her investment. The graph is increasing over time, since the rate is 14%. The values of t are greater than or equal to 0, since we are referring to time, in years.
B. In the parentheses we see 1.14, this means that the graph will increase from the point 1.14 on the y-axis. The 3000 on the graph can be found as the maximum amount of investment. The t values will start at 1.14 and increase over time.
C. This is a linear graph that shows how her money grows each year. She will start with $3000 and each year it will increase by $1.14. The y-intercept is (1.14, 3000).