Question

Carlos deposits $500 into a savings account which earns him 4% annual interest. He sets up the following equation. What does this expression mean in this context?

A) This equation represents Carlos's savings over time.
B) This equation represents Carlos's monthly expenses.
C) This equation represents Carlos's income.
D) This equation represents Carlos's interest rate.

Answer 1

The expression in the equation represents Carlos's savings over time by factoring in the initial deposit and the annual interest rate.

Step-by-step explanation:

The expression in the equation represents Carlos's savings over time. It represents the amount of money that Carlos will have in his savings account after a certain period of time, considering the initial deposit and the annual interest rate.

In this case, the equation is likely to be of the form:

Savings = Initial Deposit + (Initial Deposit x Interest Rate)

So, the expression would be $500 + ($500 * 0.04), since Carlos has made a $500 deposit and the interest rate is 4%.

By simplifying the expression, Carlos's savings over time can be calculated.