In 2002, a principal of $1600 was invested at 3.25% interest, compounded annually.

Let t be the number of years since 2002. Let y be the value of the investment, in dollars.

Write an exponential function showing the relationship between y and t.

Answer: y = 1600 (1.0325) ^t

Step-by-step explanation:

We would apply the formula for determining compound interest which is expressed as

y = P (1+r/n) ^nt

Where

A = total amount in the account at the end of t years

r represents the interest rate.

n represents the periodic interval at which it was compounded.

P represents the principal or initial amount deposited

From the information given,

P = $1600

r = 3.25% = 3.25/100 = 0.0325

n = 1 because it was compounded once in a year.

Therefore, the exponential function showing the relationship between y and t is

y = 1600 (1 + 0.0325/1) ^ 1 * t

y = 1600 (1.0325) ^t