Question

Jessica opened the bank account that earns 2% interest compounded annually.can you deposit was $100 and she use the Expression $100(x)^t to find the value of the account after t years.

what is the value of the x in the expression?

Answer 1

ok so compound interst formula is

`F=A(1+ (c)/(n))^(nt)`
where

F=future amount
A=present amount
c=percent interest in decimal form
n=number of times compoounded per year
t=times in years

A= present amount=100
c=2%=0.02
n=1 since once per year
t=t
so
F=100(1+(0.02)/1)^(1t)
F=100(1+0.02)^t
F=100(1.02)^t

x=1.02