Question

An investor puts $800 into an account that pays 7.5% interest compounded annually. The total amount A in the account after t years is given by which function below?

A = 800(1.75) ^t
A = 800(1.075) t
A = 800(1.075)^ t
A = 800 + (1.075)^ t

Answer 1

Let's see

`\\ \tt\leadsto A=P(1+r/n)^(nt)`

• n is 1

`\\ \tt\leadsto A=P(1+r)^t`

`\\ \tt\leadsto A=800(1+0.075)^t`

`\\ \tt\leadsto A=800(1.075)^t`

Option C

Answer 2

A = 800( 1.075)^(t)

Explanation:

The equation for interest is

A = p (1+r/n) ^ nt where p is the principle, r is the interest rate, n is the number of times per year and t is the years

A = 800( 1+ .075/1)^(1*t)

A = 800( 1.075)^(t)