To see how money is changing with respect to time, we will observe the time and money value differences between two periods.
At 6 months, there is $467
At 8 months, there is $557
We can see that within a two month increase, the amount of money has also increased.
We can observe the values for 10 and 12 months and see that these months are also asscociated with increased account values.
a)
Correct option: As the time increases the amount of money in the account increases.
Rate of increase:
r = (557-467)/2 =
$45 dollars per month.
We are asked to find the amount of money at time t= 0 months.
Since then, the amount in the account has increased 6 times. It has increased by $270.
b)
Therefore the account started with $197.