Question a-comp
A company opens an account with an initial balance of . The account earns interest, and no additional deposits or withdrawals are made. The account balance is given by an exponential function , where is the account balance, in dollars, years after the account is opened. The account balance after years is . Which equation could define ?
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, , in dollars, after years can be modeled by an exponential function, it follows that function can be written in the form , where is the initial value of the function and is a constant related to the growth of the function. It's given that the initial balance of the account is , so it follows that the initial value of the function, or , must be . Substituting for in the equation yields . It's given that the account balance after years, or when , is . It follows that , or . Dividing each side of the equation by yields . Taking the th root of both sides of this equation yields , or is approximately equal to . Substituting for in the equation yields , so the equation could define .
Choice B is incorrect. Substituting for in this function indies an initial balance of , rather than .
Choice C is incorrect. Substituting for in this function indies an initial balance of , rather than . 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.
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