Question

Brad wants to open a new savings account. He finds one that returns 3% on his investment each year.

Answer 1

Answer:

Step-by-step explanation:

Return rate, r = 3% = 0.03

x = initial investment

b = final balance

After 1 year, the balance i

b = initial investment + interest

b = x + r*x = (1 + r)*x

Because r = 0.03,

b = 1.03x   (after 1 year)