Question

Josiah invests $360 into an account that accrues 3% interest annually. Assuming no deposits or withdrawals are made, which equation represents the amount of money in Josiah’s account, y, after x years? a. y = 360(1.3)x b. y = 360(0.3) c. y = 360(0.03)x d. y = 360(1.03)x

Answer 1

The future worth (F) of the current investment (P) with the compounded interest of i is calculated through the formula,
                           F = P x (1 + i)^n
Substituting the known values and the given values,
                           y = 360(1 + 0.03)^x
Simplifying,
                              y = 360(1.03)^x
Thus, the answer is letter D.