Question

Which of the situations could be represented with the equation below?

f(x) = 750 (1 + 0.05/4)^4x

You deposit $750 in a savings account that earns 1.05% annual interest compounded yearly.

You deposit $750 in a savings account that earns 5% annual interest compounded quarterly.

You deposit $750 in a savings account with a fixed interest rate of 5%.

You deposit $750 in a saving account compounded semi-annually.

PLEASE HELPPPPP!!!!

Answer 1

You deposit $750 in a savings account that earns 5% annual interest compounded quarterly.

Explanation:

The '4' in f(x) = 750 (1 + 0.05/4)^4x

indicates compounding 4 times per year, at 5% annual interest

This is "compounded quarterly."

The second answer choice is the correct one:

"You deposit $750 in a savings account that earns 5% annual interest compounded quarterly."