Tim deposits money in a certificate of deposit account. The balance (in dollars) in his account t years after makingthe deposit is given by T(t) = 1000(1.06)t for t ≥ 0a. Explain, in terms of the structure of the expression used to define T(t), why Tim’s balance can never be $999
Accepted Solution
A:
Answer:The minimum balance is $ 1,000Step-by-step explanation:According to the expression used to define the balance in Tim's account, at time t = 0:[tex]T(0) = 1000(1.06)^{0}\\T(0) = 1000(1)\\T(0)=1000[/tex]Then, the initial balance in Tim's account is 1000 dollars. One year later, the balance in Tim's account will be:[tex]T(1)=1000(1.06)^{1}\\T(1) = 1060[/tex]And each subsequent year, the balance will increase in a factor of 1.06. The minimum balance in Tim's account is 1000, and there is no possibility that the balance could be less than that amount of money.