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?

Question

Mathematics

Felicity Dickerson

25 May, 16:23

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?

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Answers (1)

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Dj · Answer 1

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

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