Question

You put $200 into an account earning 6% interest compounded yearly.

Write a rule to model the situation. Your answer should not include spaces and be formatted like: y=3(4)^x


Based on your equation, when will the account be worth $2500? Round your answer to the nearest hundredths place and do not include labels. Ex. 3.14

Answer 1

• y = 200(1.06)^x

Explanation:

Given:

• Initial amount = 200
• Interest rate = 6% or 0.06 times
• Number of compounds = 1
• Number of years = x

Final amount is:

• y = 200(1 + 0.06)^x ⇒
• y = 200(1.06)^x