Answer:
Exponential function is:
y = 100 (1.03)ˣ
Step-by-step explanation:
We know that the exponential growth function is of the form
y = a (1 + r)ˣ
Here:
a = initial value
r = growth rate
x = number of time intervals that have passed
Given that A new savings account is opened with 400. Thus,
a = 400
Given that a new saving account gains 3% every year.
r = 3% = 0.03
now substituting a = 400 and r = 0.03 in the function
y = a (1 + r)ˣ
y = 100 (1 + 0.03)ˣ
y = 100 (1.03)ˣ
Therefore, exponential function is:
y = 100 (1.03)ˣ
Please note that the growth factor i.e. 1.03 is greater than 1, so the exponential function represents exponential growth.
