20
QuizMultiple Choice

Exponential Functions — Test

Question 20 • CMS 2026-2027 NC Math 1 CREDIT RECOVERY

What does the formula A=1,500⁢(1.05)^t represent?

Answer
A
a principal of $1,500 decreasing by 5% per year
B
a principal of $1,500 increasing by 5% annually
C
a principal of $1,500 increasing by 50% annually
D
a loan of $1,500 with simple interest

Explanation

In A = 1,500(1.05)^t, 1,500 is the starting amount. The yearly growth factor is 1.05, which means the amount is multiplied by 105% each year, or increases by 5% annually. So the formula represents a principal of $1,500 increasing by 5% annually.

AI-written and checked against the verified answer.

Previous
Next