Question

Danielle plans to open a savings account with $2000. The bank offers 8% interest,compounded yearly. Which of the following functions can be used to find the projectedvalue of the account after t years?A.V (t) = 2,000 (1.08t)B. V (t) = 2,000 (1.8)^tC.V (t) = 2,000 (1.08)^tD. V (t) = 2,000 (1.008)^t

Answer 1

the formula for the compound interest is given as follows,

`A=P(1+(R)/(100))^t`

here P = 2000 , R = 8 % , t = t.

so the value(V) is

`\begin{gathered} V=2000(1+(8)/(100))^t \\ V=2000(1+0.08)^t \end{gathered}`
`V=2000(1.08)^t`

so the answer is option C