Practice Test 6

A town’s population is modeled by $P(t) = 25{,}000(1.02)^t$, where $t$ is the number of years since 2026. What is the initial value of the population in this model?

A savings account balance is modeled by $A(t) = 800(1.05)^t$, where $t$ is the number of years. In this model, what does $1.05$ represent?