Question

The function below represents the annual interest Alexander earns on a savings account. Identify the term that represents the amount of time that the money is accruing interest. f(x) = 500(1 + 0.02)x 500 1 0.02 x

Answer 1

300

Explanation:

Answer 2

Option 4

The term that represents the amount of time that the money is accruing interest is 'x'.

Explanation:

Given : The function below represents the annual interest Alexander earns on a savings account.

`f(x)=500(1+0.02)^x`

To find : Identify the term that represents the amount of time that the money is accruing interest ?

Solution :

The general annual interest formula is
`A=P(1+r)^t`

Where, A is the amount

P is the principal

r is the interest rate

t is the time

The annual interest Alexander earns on a savings account is

`f(x)=500(1+0.02)^x`

Comparing with general formula,

t=x

The term that represents the amount of time that the money is accruing interest is 'x'.

Therefore, Option 4 is correct.