Question

A savings account compounds interest, at a rate of 25% once a year. Eve puts 500 in the account as the principal. How can eve set up a function to track the amount of money she has?

Answer 1

F(x) = 500(1.25)^x would be the function

Answer 2

Answer:

Function to track the amount of money Eve has is $A(n)=500(\frac{5}{4})^n$

Step-by-step explanation:

Given:

Principal Amount in the account, P = $ 500

Rate of interest, r = 25%

Interest is compounded annually.

To write a function to track amount in the account.

We use the Formula of amount of the compound interest.

$A=P(1+\frac{r}{100})^n$

By, Substituting given values we have

Amount in the account, $A=500(1+\frac{25}{100})^n$

$A=500(\frac{5}{4})^n$

where, n is number of year.

Therefore, Function to track the amount of money Eve has is $A(n)=500(\frac{5}{4})^n$