Question an-inv
An investment account was opened with an initial value of . The value of the account doubled every years. Which equation represents the value of the account , in dollars, years after the account was opened?
An investment account was opened with an initial value of $ 890 . The value of
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 C is correct. It's given that represents the number of years since the account was opened. Therefore, represents the number of -year periods since the account was opened. Since the value of the account doubles during each of these -year periods, the value of the account can be found by multiplying the initial value by factors of . This is equivalent to . It's given that the initial value of the account is . Therefore, the value of the account , in dollars, years after the account was opened can be represented by .
Choice A is incorrect. This equation represents the value of an account if the value of the account halves, not doubles, every years.
Choice B is incorrect. This equation represents the value of an account if the value of the account decreases by , not doubles, every , not , years.
Choice D is incorrect. This equation represents the value of an account if the value of the account increases by a factor of , not doubles, every , not , years.
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