Question

The value of a bank account, y, increases by 5% each year, x. If the initial value of the account is $800, which equation represents this situation?

Answer 1

Equation to represent the situation =
`800=Y(1.05)^X`

Explanation:

Given:

Initial investment = Y

Growth rate (r) = 5% = 5 / 100 = 0.05

Number of year (n) = X year

Amount after X year = $800

Find:

Equation to represent the situation:

Computation:

`Amount = Initial\ investment (1+r)^n\\\\800 = Y (1+0.05)^X\\\\800 = Y (1.05)^X\\\\`

Equation to represent the situation =
`800=Y(1.05)^X`