question 2(multiple choice worth 2 points) (an interest in growth models lc) the table represents a savings…

question 2(multiple choice worth 2 points) (an interest in growth models lc) the table represents a savings account with continuously compounded annual interest. x 0 1 2 3 4 y $3,500 $3,716.43 $3,946.24 $4,190.26 $4,449.37 what does the value of the y - intercept represent in the context of continuously compounded interest? the value of $3,716.43 represents the principal amount. the value of $3,716.43 represents the percent rate of change. the value of $3,500 represents the principal amount. the value of $3,500 represents the percent rate of change.

question 2(multiple choice worth 2 points) (an interest in growth models lc) the table represents a savings account with continuously compounded annual interest. x 0 1 2 3 4 y $3,500 $3,716.43 $3,946.24 $4,190.26 $4,449.37 what does the value of the y - intercept represent in the context of continuously compounded interest? the value of $3,716.43 represents the principal amount. the value of $3,716.43 represents the percent rate of change. the value of $3,500 represents the principal amount. the value of $3,500 represents the percent rate of change.

Answer

Brief Explanations:

In a continuously - compounded interest model $A = Pe^{rt}$, when $t = 0$ (corresponding to the y - intercept where $x = 0$ in the table), $A=P$. Here, when $x = 0$, $y=$3,500$. The principal amount $P$ is the initial amount of money in the savings account. The percent rate of change is related to the growth factor and not the y - intercept value.

Answer:

The value of $3,500 represents the principal amount.