The initial balance of a mutual fund is $1200. The fund is expected to grow in value at an annual rate of 2%.Let x represent the number of years since the fund was started. Let y represent the value of the fund x years later.What equation models the value of the mutual fund x years after it was started?
Accepted Solution
A:
1200 + .02x = y
The 1,200 has nothing done to and just added in the equation since it's the initial balance. The annual rate is 2% and in decimal form that's .02. x is years so years is multiplied by the 2% fee since the fee is annual. Then this equals the value of the fund x years later which is y. Hopefully all of that made sense XD Happy Holidays!