Question

Javier deposited $250 into a savings account with an interest rate of 1.6%. He made no deposits or withdrawals for 9 months. If interest was compounded annually, which

equation represents the balance in the account after 9 months?
A = 250(1 -0.016)^9
A = 250(1 +0.0016)^9
A = 250(1 +0.016)^0.75
A = 250(1 -0.016)^0.75

Answer 1

A = 250(1 + 0.016)^0.75.

Explanation:

9 months = 0.75 years

So A = 250(1 + 0.016)^0.75.