Chapter 6, Problem 8CT

To determine

To find: The function and the graph that represents the given situation.

Answer to Problem 8CT

The function for the given situation is $A=500{\left(1.065\right)}^t$

Explanation of Solution

Given information: $\$500$ is deposited in the bank account that earns $6.5\%$ annual interest compounded yearly.

Calculation:

Initial deposit, $P=500$

Interest rate, $r=6.5\%$ annualy

Let amount after $t$ years be $A$ .

So, the amount after $t$ years can be find out with the help of following formula

  $A=P{\left(1+r\right)}^t$

By substituting the values, we get

  $\begin{array}{l}A=500{\left(1+0.065\right)}^t\\ A=500{\left(1.065\right)}^t\end{array}$

The required graph is