Exponential Growth in Savings Accounts

The video tutorial explains how Stacy invested $13,500 in 2011 for her son's college fund, which grows at an annual interest rate of 5.2%. The tutorial models this growth using an exponential equation, calculates the accrued value in 2029, and rounds the result to the nearest cent. The process involves setting up the equation with initial value and growth rate, calculating the future value, and ensuring accurate rounding.

What was the initial amount Stacy invested in the savings account?

• $14,000

• $12,000

• $15,000

• $13,500

What is the interest rate of the savings account per year?

• 5.2%

• 5.0%

• 6.0%

• 4.5%

What type of growth does the savings account experience?

• Linear growth

• Exponential growth

• Logarithmic growth

• Quadratic growth

In the exponential growth formula, what does the variable 'a' represent?

• The initial value

• The interest rate

• The time period

• The final value

How is the interest rate expressed in the exponential equation?

• As a fraction

• As a percentage

• As a whole number

• As a decimal

What is the base year used for calculating the time 't' in the equation?

• 2015

• 2029

• 2011

• 2000

What is the value of 't' when calculating the account's value in 2029?

• 10

• 15

• 20

• 18

What is the final value of the savings account in 2029, rounded to the nearest cent?

• $33,000.00

• $34,000.00

• $32,000.00

• $33,621.50

Which mathematical operation is used to find the final value of the account?

• Multiplication

• Exponentiation

• Subtraction

• Addition

Why is it important to round the final value to the nearest cent?

• To ensure accuracy in financial transactions

• To avoid using decimals

• To simplify calculations

• To make the number look better