Question

Samantha puts an initial $500 into a savings account. The account has a 4% annual compound interest rate. What is the function that best represents Samantha's account and how much does she have in savings after 5 years? Round your answer to the nearest dollar.

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


f(x) = 500(1.4)x, $2,689

f(x) = 500(0.04)x, $512

f(x) = 500(1.04)x, $608

f(x) = 500(1.04)x, $527


I'm in a bad need of help! please help....

Answer 1

Hi there:)
The original formula is
F (x)=p (1+r)^t
F future value
P present value 500
R interest rate 0.04
X time
F (x)=500 (1+0.04)^x
F (x)=500 (1.04)^x .....answer
Now let's find the amount after 5 years
F (5)=500×(1+0.04)^(5)=608...answer

So option c is the answer


Hope it helps