Karl has $400 in a savings account. the interest rate is 10%, compounded annually. which type of model best fits this situation? a) linear b) radical c) quadratic d) exponential

Exponential model best fits this situation.

Step-by-step explanation:

Given : Karl has $400 in a savings account. The interest rate is 10%, compounded annually.

We have to determine which type of model best fits this situation.

Since, interest is calculated compounded

Using formula for compounded  interest , we have,

Where P is principal amount

n is time period

r is interest rate

We are given P = $ 400

and r = 10 % = 0.10

Substitute, we have,

Now this is an equation of the form which is exponential function.

So, exponential model best fits this situation.

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step-by-step explanation: