Question

Sal places $500 in a retirement account that offers a return of 3.5% compounded annually . He will not deposit or withdraw any money from the account . Which function represents f(t) , the amount of money in the account after years a f(t) = 500 * (0.035) ^ t c. F(t) = 500 + 0.035t f(t) = 500 * (1.035) ^ t d. F(t) = 500 + 1.035t

Answer 1

f(t) = 500 * (1.035) ^ t

Explanation:

A = p(1 + r/n)^nt

Where

A = future value = ?

P = principal = $500

r = interest rate = 3.5% = 0.035

n = number of periods = 1

t = number of years = t

A = p(1 + r/n)^nt

= 500(1 + 0.035/1)^1*t

= 500(1 + 0.035) ^t

= 500( 1.035)^t

= 500 * (1.035)^t

f(t) = 500 * (1.035) ^ t