Question

Create an exponential to describe $100 at 2% interest compounded annually for x years

Answer 1

Answer:

$A=100(1.02)^{x}$                  

Step-by-step explanation:

we know that    

The compound interest formula is equal to  

$A=P(1+\frac{r}{n})^{nt}$  

where  

A is the Final Investment Value  

P is the Principal amount of money to be invested  

r is the rate of interest  in decimal

t is Number of Time Periods  

n is the number of times interest is compounded per year

in this problem we have  

$t=x\ years\\ P=\ 100\\ r=2\%=2/100=0.02\\n=1$  

substitute in the formula above

$A=100(1+\frac{0.02}{1})^{1*x}$  

$A=100(1.02)^{x}$