SOLUTION: Jennifer starts a new investment account that grows exponentially. Her financial advisor tells her the initial investment of $50,000 grows at a rate of about 15% annually. 1. Dete

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Question 1067161: Jennifer starts a new investment account that grows exponentially. Her financial advisor tells her the initial investment of $50,000 grows at a rate of about 15% annually.
1. Determine a function, I(t), that determines Jennifer’s investment account balance after t years. For the exponential growth function, what are the “a” and “b” values? What do those values represent? (5 points for the explanation of “a” and “b” and 5 points for the function)
2. Calculate how much money Jennifer will have after 10 years. (10 points)
Answer by Boreal(15235)   (Show Source): You can put this solution on YOUR website!
exponential function is y=ab^x
50000*(1+0.15)^t
The a value is 50,000, the constant which is multiplied by the interest function.
the b value is 1.15, the return of the money every year is 1.15 times the prior year.
After 10 years, it is 50,000*(1.15)^10=$202,277.89 assuming the rate is 15%, and "about" means 15%.
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