Question

Samantha puts an initial $500 into a savings account. The account has a 4% annual compound interest rate. What is the equation that best represents Samantha's account?

Hint: Use the formula y = P(1 + r)x.

y = 500(1.4)x
y = 500(0.04)x
y = 500(1.04)x
y = 500(0.4)x

Answer 1

c

Explanation:

Answer 2

In the equation, P would be the principle, or the amount in this case, multiplied by the annual rate raised by the number of years. 4% in decimal form would be .04, adding 1 to it includes the total principle plus the 4%, if you just multiplied by .04 you would be taking 4% of the $500. The answer is C.

Explanation: