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

Answer:
`y = 360(1.03)^x`

Explanation:

Since, the principal amount of the money = $ 360

Annual rate of interest = 3%

Thus, the amount after x years which is increased by 3 %,

`= 360(1+(3)/(100) )^x`

`= 360(1+0.03 )^x`

`= 360(1.03 )^x`

Since, this amount represented by y,

Thus, the required equation that represents the amount of money in Josiah’s account, y, after x years is,

`y = 360(1.03 )^x`

Answer 2

The future amount of money that is invested currently at a certain interest that is compounded annually is calculated through the equation,
F = P x (1 + i)^n
where F is the future worth, P is the present worth, i is the interest rate, and n is the number of years. Substituting the known values and variables in the given, F = ($360)(1.03)^x