Question

An investor puts $500 into an account that pays 3% interest compounded annually. The total amount A in the account after t years is given by which function below A = 500(1.03)t

A = 500(1.03)t
A = 500(103)t
A = 500 + (1.03)t

Answer 1

b

Explanation:

Answer 2

`\bf ~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+(r)/(n)\right)^(nt) \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\$500\\ r=rate\to 3\%\to (3)/(100)\dotfill &0.03\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{annually, thus once} \end{array}\dotfill &1\\ t=years \end{cases} \\\\\\ A=500\left(1+(0.03)/(1)\right)^(1\cdot 5)\implies A=500(1.03)^t`