The situation is an exponential function of exponential growth with a factor of 1.034 and the initial amount of $5,250.
What in a compound interest?
Compound interest is when both the amount invested and the interest already accrued earn an interest. This means that when there is a compound interest, the amount invested increases by a certain amount.
The equation that can be used to represent compound interest is:
FV = PV(1 + r)^n
Where
- PV = amount invested
- (1 + r) = exponential factor
- n = number of years
To learn more about compound interest, please check: https://brainly.com/question/26367706
