Question

Which explicit formula can be used to find the account's balance at the beginning of year 15?

Answer 1

Simple interest is calculated with the following formula: S.I. = P × R × T, where P = Principal, R = Rate of Interest in % per annum, and T = Time, usually calculated as the number of years. The rate of interest is in percentage r% and is to be written as r/100.

here

P = $450

R = 5% = 0.05

T = n - 1

Since Amount = Principal + Interest

Interest = PRT

`\begin{gathered} A(n)=450+\left(n-1\right)(450*0.05) \\ \end{gathered}`
`A(15)=450+(15-1)(450*0.05)=\$765.00`

The correct option is C.