Question

5. Which function models the value in x years of an investment at 3% annual interest compounded quarterly? 150(1-0.03)*x (b. 150(1+0.03)** a. C. 150(1-0.03)* d. 150(1+0.0075​

Answer 1

The function models the value in x years of an investment at 3% annual interest compounded quarterly is b)
`150 \left(1 + 0.03\right)^{(x)/(4)}`

The correct formula for compound interest is given by:

`\[ A = P \left(1 + (r)/(n)\right)^(nt) \]`

In this case, P = 150, r = 0.03, n = 4 (compounded quarterly), and t represent the number of years.

So, the correct formula for the value of the investment in x years at 3% annual interest compounded quarterly is:

`\[ A(x) = 150 \left(1 + (0.03)/(4)\right)^(4x) \]`

Therefore, the correct option is: b)
`150 \left(1 + 0.03\right)^{(x)/(4)}`