Step-by-step explanation:
Exponential Functions:
y=ab^x
y=ab
x
a=\text{starting value = }1600
a=starting value = 1600
r=\text{rate = }5.25\% = 0.0525
r=rate = 5.25%=0.0525
\text{Exponential Growth:}
Exponential Growth:
b=1+r=1+0.0525=1.0525
b=1+r=1+0.0525=1.0525
\text{Write Exponential Function:}
Write Exponential Function:
y=1600(1.0525)^x
y=1600(1.0525)
x
Put it all together
\text{Plug in time for x:}
Plug in time for x:
y=1600(1.0525)^{25}
y=1600(1.0525)
25
y= 5750.0628984
y=5750.0628984
Evaluate
y\approx 5750.06
y≈5750.06
