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 am thinking it would be 3500+3.5%t

Answer 2

The function equation represents the balance of the account after t years is

`y = 3500 (1.035)^(t)`

Explanation:

The function is defined by

`y = a (1 + r)^(t)`

Where a is the initial value, r is the rate in the decimal form and t is the time.

As given

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

Here

a = $3500

3.5% is written in the decimal form.

`= (3.5)/(100)`

= 0.035

r = 0.035

Time = t years

Put in the function

`y = 3500 (1 + 0.035)^(t)`

`y = 3500 (1.035)^(t)`