A person invests $7000 at 10% interest compounded annually. Let

be the value (in dollars) of the account at

*t* years after he/she has deposited the $7000.

a. Find an equation of

*f*.

My answer:

b. What is the base

*b* of your model

? What does it mean in this situation?

My answer: 1.10; the account balance increases by 10% each year.

c. What is the coefficient

*a* of

? What does it mean in this situation?

My answer: 7000; the initial amount invested was $7000.

d. What will be the account's value in 10 years?

**Explain why the value has more than doubled, even though the investment earned 10% for 10 years. **
My answer: For the first part I got $18156.

**But what would be the explanation? ** That I don't get...