Question

Create an exponential to describe $100 at 2% interest compounded annually for x years

Answer 1

`A=100(1.02)^(x)`

Explanation:

we know that

The compound interest formula is equal to

`A=P(1+(r)/(n))^(nt)`

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

n is the number of times interest is compounded per year

in this problem we have

`t=x\ years\\ P=\$100\\ r=2\%=2/100=0.02\\n=1`

substitute in the formula above

`A=100(1+(0.02)/(1))^(1*x)`

`A=100(1.02)^(x)`