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.

   Answer (a):

   $y = 500(1.08)^x$

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

   Hint (b):

   Substitute $16$ for $x$.

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

   Hint (c):

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

   More help (c):

   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.