Question

12. The amount of money in a savings account earning yearly interest is represented by the

expression 750(1+0.012), where t is in years since the account was opened. What does
(1+0.012) represent?
A
B
C
D
The account earns $0.012 in yearly interest.
The account earns $1.20 in yearly interest.
The account earns 1.2% in yearly interest.
The account earns 12% in yearly interest.

Answer 1

C. The account earns 1.2% in yearly interest.

Explanation:

The expression 750(1+0.012) represents the amount of money in a savings account earning yearly interest after t years, where t is the number of years since the account was opened.

The expression (1+0.012) represents the interest rate as a decimal. The value 0.012 represents 1.2% in decimal form, which is the yearly interest rate earned by the account.

Therefore, (1+0.012) represents the account's yearly interest rate as a decimal, which is 1.2%.