Question

Jamie puts an initial $900 into a savings account. The account has a 7% annual compound interest rate. What is the function that best represents Jamie's account and how much does he have in savings after 5 years? Round your answer to the nearest dollar.

Hint: Use the formula, f(x) = P(1 + r)x

A. f(x) = 900(1.7)x, $1,081

B. f(x) = 900(1.07)x, $1,262

C. f(x) = 900(1.07)x, $1,081

D. f(x) = 900(0.07)x, $1,262

Answer 1

D. f(x)=900(0.07)^x.1,262

Explanation:

You would have to use the P(1+r)^x

P= starting amount

R= rate of change or the percentage changed into a decimal

x= time

So it would be, 900(1+0.07)^5

calculating that you would get 1,262.3. but approximately it's 1,262.

Hope this helped