Question

Franklin deposits $3500 in an account that earns 3.5% interest compounded annually.

What function equation represents the balance of the account after t years?

Answer 1

I just learned this topic today so I am just telling you now that I could be wrong, as I am still trying to completely grasp it!


Use the formula y=b(1+r)^t to solve....

B= initial amount
R= rate

So what is your initial amount??? The initial amount is 3500, which makes your rate 3.5%. YOU MUST CHANGE YOUR PERCENT TO A DECIMAL! (0.035)

Plug in your work: f(t)3500(1+0.035)
Then REMEMBER TO SIMPLIFY! YOU CAN NOT FORGET THIS STEP, IF THIS IS FROM A QUIZ YOU WILL GET THE ANSWER WRONG IF YOU DO NOT!!! (Trust me, I know. I have to retake my quiz for this :o )

Do 1+0.035 and get 1.035

So, again plug in and I am pretty sure you should get the answer: f(t)=3500(1.035)^t

Answer 2

The formula can taken through the compounded interest formula:
A= P(1+r/n) to the power of n time t.

P = is the initial amount or the principal

r = interest rate (annually)

t = years or tenor of the deposit

A = total amount of money after the tenor

n = frequency of the compound