Question

Maya is going to invest $1500 into an account where her money will grow by 15% each year. If she leaves her money in her account and tracks its growth, answer the following question about the scenario

Which equation would best model the situation?
A. D=(1.15)Y
B. D=1.15y
C. D=1500(1.15)y
D. D=1500+1.15y

Answer 1

The equation to model Maya's investment with a 15% annual growth rate is D=1500(1.15)^y, representing compound interest including the initial principal and growth over years.

Step-by-step explanation:

The correct equation to model the situation where Maya is investing $1500 into an account with a 15% annual growth rate is represented as C. D=1500(1.15)y. This equation uses the principle of compound interest to calculate the future value of the investment after 'y' years. Compared to the other options, 'C' correctly incorporates both the initial principal amount (the $1500) and the growth effect of the interest rate compounded annually.