Question

Brad wants to open a new savings account. He finds one that returns 3% on his investment each year.

Question 1
Assign a variable to each of the following pieces of information

Final balance
Initial investment
Return rate

Answer 1

Explanation:

Return rate, r = 3% = 0.03

x = initial investment

b = final balance

After 1 year, the balance i

b = initial investment + interest

b = x + r*x = (1 + r)*x

Because r = 0.03,

b = 1.03x (after 1 year)