Question

Scott invests $1000 at a bank that offers 6% compounded annually.Write an equation to model the growth of the investment

Answer 1

Explanation:

Using the formula for the growth of investment:

.....[1]

where,

A is the amount after t year

P is the Principal

r is the growth rate in decimal

As per the statement:

Scott invests $1000 at a bank that offers 6% compounded annually.

⇒P = $1000 and r = 6% = 0.06

substitute these in [1] we get;

⇒

Therefore, an equation to model the growth of the investment is,