Question

Kaylee deposited $1,450 in an account that earns 2.596 interest compounded annually. Which function represents the situation, where tis

the time in years?

fit) = 1450(2.5)

f(t) = 1450(1.25)

FO) = 1450(.025)

f(t) = 1450(1,025)

Answer 1

`f(t) = 1450(1.025)^(t)`

Explanation:

Given

`P =1450` -- principal

`r = 2.5\%` --- rate

`n = 1` --- compounded once a year

Required

Determine the function for compound interest

Compound interest f(t) is calculated as:

`f(t) =P(1 + r/n)^{nt`

So, we have:

`f(t) = 1450(1 + 2.5\%/1)^(1 * t)`

`f(t) = 1450(1 + 2.5\%)^(t)`

`f(t) = 1450(1 + 0.025)^(t)`

`f(t) = 1450(1.025)^(t)`