Question

You invest $1700 in an account that earns 1.3% interest compounded daily. Write an equation to model the amount of money at any given time.

Please give an explanation but detailed as possible. I would like to learn how to solve word problems like these and improve on my math. I wan to get better so I can peruse my dream of being an engineer, and math is an important concept to it, so I would highly appreciate some help so I can learn :D

Answer 1

the equation goes like this

y = ab^x

y = total cost

a = the intital amount (in your case the $1700)

b = the interest (since this is an exponetial growth it should be 1.013)

x = time

soo y = 1700(1.013)^x is the equation