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

y=360(1.03)x is the correct set up

Answer 2

`\text{y}=\$360*((103)/(100))^\text{x}`

Explanation:

Given: Josiah invests $360 into an account that accrues 3% interest annually.

To Find: Assuming no deposits or withdrawals are made, equation that represents the amount of money in Josiah’s account, y, after x years.

Solution:

Total amount in josiah's account after x years=
`\text{y}`

Amount invested in account by Josiah =
`\$`
`360`

Interest accrued by josiah Annually =
`3` %

Total amount of josiah after 1 year =
`\$360+\$360*(3)/(100)`

=
`\$ 360((103)/(100))`

Total amount after 2 years =
`\text{Total amount after one year}*(103)/(100)= \$360*(103)/(100)*(103)/(100)`

=
`\$360*((103)/(100))^2`

Therefore,

Equation of money in josiah's account after x years

`\text{y}=\$360*((103)/(100))^\text{x}`