Question

1. A student invests $500 in a savings account that earns 4% interest per

year. Which equation can be used to determine the amount of money S(t)
that her savings account has after t years? *​

Answer 1

The equation can be used to determine the amount of money S(t) that her savings account has after t years is
`S(t)=500(1.04)^t`

Explanation:

A student invests $500 in a savings account

Principal = $500

Rate of interest = 4% = 0.04

We are supposed to find equation can be used to determine the amount of money S(t) that her savings account has after t years

Formula :
`A=P(1+r)^t`

Where A is the amount after t years =S(t)

t = time

r = rate of interest in decimals =0.04

P = Principal=500

Substitute the value in the formula :

So,
`S(t)=500(1+0.04)^t`

`S(t)=500(1.04)^t`

Hence The equation can be used to determine the amount of money S(t) that her savings account has after t years is
`S(t)=500(1.04)^t`