Question

Josiah invests $360 into an account that accrues 3% interest annually. Assuming no deposits or withdrawals are made, which equation represents the amount of money in Josiah’s account, y, after x years?

Answer 1

Using the simple interest formula, [ i=prt ],
y=360*0.03*x

Answer 2

`y=360* (1.03)^x`

Explanation:

given that,

Josiah invests = $360

interest annually = 3%

the amount of money in Josiah's account = y

time at which the amount of y in Josiah's account = x

using compound interest formula

`A = P*( 1+(r)/(100))^t`

`y = 360 *( 1+(3)/(100))^x\\y=360* (1.03)^x`

hence, the required equation comes out to be

`y=360* (1.03)^x`