Answered

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Lily wants to open an investment account to save for a down payment on a house. The growth of the account that her banker recommends (account A) can be modeled by the function A(t) = 3,000(1.024)^4t, where t is the number of years that the account is open.

Consider the account that Lily’s banker recommends (account A) to complete the statement.

Select the correct answer from each drop-down menu.
If Lily chooses account A, the balance of her account would increase by a rate of __
on a __ basis.

1. .024%
0.24%
2.4%
3%
4%
1.024%

2. monthly
yearly
quarterly
weekly
semi-annual

Sagot :

MrRoyal

If Lily chooses account A, the balance of her account would increase by a rate of 2.4%  on a quarterly basis

The Equation

The equation of the function is given as:

[tex]A(t) = 3000(1.024)^{4t[/tex]

Exponential function

An exponential function is represented as:

[tex]y = a(1 + r)^x[/tex]

Where:

  • a represents the initial value
  • r represents the rate

So. by comparison:

[tex]1 + r=1.024[/tex]

Subtract 1 from both sides

[tex]r=.024[/tex]

Express as percentage

[tex]r=2.4\%[/tex]

From the function, the exponent of the rate is 4t.

This means that, the balance increases four times in a year.

So, her balance would increase quarterly

Read more about exponential functions at:

https://brainly.com/question/11464095

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