Question

Help?

An investor puts $1,000 into an account that pays 2% interest compounded annually. The total amount A in the account after t years is given by which function below?

A) A = 1,000(1.02)t
B) A = 1,000(102)t
C) A = 1,000(1.02)t
D) A = 1,000 + (1.02)t

Answer 1

A = P(1 + r)^t is the interest formula
A = 1000(1 + .02)^t
A = 1000(1.02)^t
I'm not sure which of your two answers A or C have the t raised to a power but you need to choose the one with the t raised to a power.