Question

Gerald is depositing his savings into a bank account which compounds interest quarterly . The balance , Sin dollars after tyears is shown by the following equation . S(t) = 1, 400 * (1.03) ^ (4t) Which statement best describes 1.400.?

Answer 1

Answer:B. Initial deposit of $1,400

Explanation:

The equation S(t) = 1,400 * (1.03)^(4t) represents the balance in dollars that Gerald will have in his bank account after t years, assuming he deposits $1,400 and the interest compounds quarterly at a rate of 3% per year 1.

The number 1.400 in the equation is simply the initial deposit amount of $1,400 2. It is not related to the interest rate or the number of times interest is compounded.

Therefore, the statement that best describes 1.400 is that it represents the initial deposit amount made by Gerald into his bank account