Question

Interest: Mrs. Valdez decides to open an account

at "Vail Pride Bank" with an initial investment of
$500. She knows she will earn 17% interest each
month for being a Vail School District employee.
How much money does Mrs. Valdez make at the
end of the first month?

Answer 1

Mrs. Valdez will make $85 at the end of the first month.

Explanation:

Let y = amount of money Mrs. Valdez will make

Let x = number of months since her investment

y = 500(0.17)^x

y = 500(0.17)^1

y = 85^1

y = 85