Question

Dwight deposits $150 into his new savings account. The account earns 5% interest compounded annually.

Write a function to model the amount in his account, A, over t years, assuming he makes no other deposits or withdrawals. Write your function in the form A=P(1 +r)^t

2Points
Use the math editor to write your function.

Answer the question in complete sentences.

Hint:

P is the initial amount in the account.
Change the interest rate from a percent to a decimal by moving the decimal 2 places to the left and substitute this number in for r.

Answer 1

`A=\$150(1.05)^(t)`

Explanation:

we know that

The compound interest formula for this problem is equal to

`A=P(1+r)^(t)`

where

A is the Final Investment Value

P is the Principal amount of money to be invested

r is the rate of interest in decimal

t is Number of Time Periods in years

in this problem we have

`P=\$150\\ r=5\%=0.05`

substitute in the formula above

`A=\$150(1+0.05)^(t)`

`A=\$150(1.05)^(t)`