Answer:
y = $(500+20t)
Step-by-step explanation:
In this question, we are asked to give an equation that calculates the amount y a savings of $500 would have yielded after a period of t years at an annual rate of 4% per annum.
This looks quite straightforward! Let’s crack it!
Now, the amount y after t years is simply the initial savings plus the interest on the savings.
This means mathematically we should have a representation like;
y = $500 + SI
Where SI is the simple interest. Now, let’s calculate the SI with the information at our disposal.
Mathematically SI = PRT/100
where P is the initial amount saved called principal and has a value of $500 in this question
R is the rate and that is 4%
T is time and that is t years
Substituting these parameters in the equation, we have
SI = (500 * 4 * t)/100 = 20t
The amount y after t years is thus:
y = $500 + $20t or simply y = $(500+20t)
