### Home > INT1 > Chapter 8 > Lesson 8.2.1 > Problem8-98

8-98.

Kristin’s grandparents started a savings account for her when she was born. They invested \$$500$ in an account that pays $8$% interest compounded annually.

1. Write an equation to model the amount of money in the account on Kristin’s $x^{th}$ birthday.

$y = 500(1.08)^x$

2. How much money is in the account on Kristin’s $16^{th}$ birthday?

Substitute $16$ for $x$.

3. What are the domain and range of the equation that you wrote in part (a)?

Read Math Notes box in Lesson 1.2.5 for definition of domain and range.

If you were to make a table of values for this situation, what would your minimum/maximum values be?

4. Sketch a graph of this situation.