Question

You have a bank account in which your balance increases annually at a rate of 4%. If your initial investment was $100.Write an equation that represents your balance after x year.

Answer 1

We can find the equation using the following formula:

`y=P(1+r)^x`

Where:

P = Initial investment = $100

r = interest rate = 4% = 0.04

x = Number of years

So:

`\begin{gathered} y=100(1+0.04)^x \\ y=100(1.04)^x \end{gathered}`