Question

Veronica deposited $11 in a savings account that earns 1.9% simple interest. Which graph represents this scenario?

Answer 1

Option C

Explanation:

• Initial balance= $11
• Interest rate = 1.9% PA simple

It will be graphed as function:

• y = 11 + 0.019x

Since is has a very small slope of 0.019 it will be shown almost parallel to x axis.

Some points on the graph:

• Amount in 1 year= 11*(1+0.019) = $11.21
• Amount in 2 years = 11*(1+2*0.019) = $11.42
• Amount in 6 years = 11*(1+6*0.019) = $12.25
• Amount in 10 years = 11*(1 + 10*0.019) = $13.09

Correct graph is option C