Question

The function below represents the annual interest Alexander earns on a savings account. Identify the term that represents the amount of time that the money is accruing interest. f(x) = 500(1 + 0.02)x

Answer 1

Answer:

Here, x represents the amount of time that the money is accruing interest.

Step-by-step explanation:

The function below represents the annual interest Alexander earns on a savings account.

f(x) = 500(1 +0.02)x

Here, x represents the amount of time that the money is accruing interest.

We know that, if R% of interest is accrued over a principal of P over time , T,

then the net interest accrued is given by,

   

 I = $\frac {P \times R \times T}{100}$

Answer 2

Answer:

X represents the time, in this function.

Step-by-step explanation:

1) Since in Alexander's savings account the Interest is also compounded, then this function is properly written this way:

$A=P(1+\frac{r}{n})^{nt}\Rightarrow A=500(1+\frac{0.2}{1})^{t}$

$f(x)=500(1+0.02)^{x}$

Replacing A for f(x) this function tells us that for a given period (x). This savings account with a principal of $500, and 20% interest compounded annually will provide us how much he earns.

Further explanations

3) In case you want to calculate the accrues (accumulated) interest of this saving account, after having found the time, you have to know whether it is daily weekly or monthly accrued, etc.

For example:

Daily interest accrued (accumulated)= 20% (0.2) : 360 days =

$\frac{0.2}{360}=0.000556$

Supposing 31 days after the investment, Alexander will have from his $500 this interest payable:

$500 * 31 *0.000556=\ 8.62$