Question a-comp

2.1 Nonlinear Functions - Exponential growth and decay functions
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A company opens an account with an initial balance of $36,100.00 . The account earns interest, and no additional deposits or withdrawals are made. The account balance is given by an exponential function A , where A(t) is the account balance, in dollars, t years after the account is opened. The account balance after 13 years is $68,071.93 . Which equation could define A ?

A.

At=36,100.00 1.05t

B.

At=31,971.93 1.05t

C.

At=31,971.93 0.05t

D.

At=36,100.00 0.05t

A company opens an account with an initial balance of $ 36,100.00 . The account earns

Medium-difficulty · SAT Math · Nonlinear Functions — Exponential growth and decay functions. Read the question above, select your answer, and check the full explanation below to understand exactly why the correct choice works.

Answer explanation

Choice A is correct. Since it's given that the account balance, At, in dollars, after t years can be modeled by an exponential function, it follows that function A can be written in the form At=Nrt, where N is the initial value of the function and r is a constant related to the growth of the function. It's given that the initial balance of the account is $36,100.00, so it follows that the initial value of the function, or N , must be 36,100.00. Substituting 36,100.00 for N in the equation At=Nrt yields At=36,100.00rt. It's given that the account balance after 13 years, or when t=13, is $68,071.93. It follows that A13=68,071.93, or 36,100.00r13=68,071.93. Dividing each side of the equation 36,100.00r13=68,071.93 by 36,100.00 yields r13=68,071.9336,100.00. Taking the 13 th root of both sides of this equation yields r=68,071.9336,100.0013, or r is approximately equal to 1.05 . Substituting 1.05 for r in the equation At=36,100.00rt yields At=36,100.001.05t, so the equation At=36,100.001.05t could define A

Choice B is incorrect. Substituting 0 for t in this function indies an initial balance of $31,971.93, rather than $36,100.00.

Choice C is incorrect. Substituting 0 for t in this function indies an initial balance of $31,971.93, rather than $36,100.00. Additionally, this function indies the account balance is decreasing, rather than increasing, over time. 

Choice D is incorrect. This function indies the account balance is decreasing, rather than increasing, over time.