Question

Ana deposits $1,500 in a savings account that earns 4% interest annually. Which of the following equations models the amount of money,A, she’ll have in 5 years?

A. A=1,500(0.96)^5
B. A=1,500(1.04)^5
C. A=1,500(1.4)^5
D. A=1,500(0.04)^5

Answer 1

The equation that models the amount of money Ana will have in 5 years is A=1,500(1.04)^5. After 5 years, Ana will have $1,825.05.

Step-by-step explanation:

The equation that models the amount of money Ana will have in 5 years is B. A=1,500(1.04)^5.

In this equation, A represents the amount of money Ana will have, $1,500 represents the initial deposit, 1.04 represents the interest rate (4% expressed as a decimal), and ^5 represents the power of 5 years.

By using this equation, we can calculate the amount of money Ana will have after 5 years by plugging in the values and solving: A=1,500(1.04)^5 = 1,500(1.2167) = $1,825.05.