Question 12
Suppose a long term investment is modeled by the exponential function where
is the total value after year. What does 30 represent in the equation?
the growth factor
the interest rate
the initial deposit
the number of vears

In the equation , the number 30 represents the initial deposit or the starting value of the investment at time . It’s like the seed money that you’re planting in the garden of investment, from which growth and returns will sprout over the years.

When you invest money, that initial amount is crucial because all future growth is based on it. Just like a tree grows taller and spreads wider from the strong roots planted in fertile soil, your investment blossoms over time, making that initial deposit the foundation of your financial future!