Question

Scott invests $1000 at a bank that offers 6% compounded annually. Write an equation to model the growth of the investment.

Answer 1

Answer:

$A= 1000 \cdot (1.06)^t$

Step-by-step explanation:

Using the formula for the growth of investment:

$A = P(1+r)^t$            .....[1]

where,

A is the amount after t year

P is the Principal

r is the growth rate in decimal

As per the statement:

Scott invests $1000 at a bank that offers 6% compounded annually.

⇒P = $1000 and r = 6% = 0.06

substitute these in [1] we get;

$A = 1000(1+0.06)^t$

⇒$A= 1000 \cdot (1.06)^t$

Therefore, an equation to model the growth of the investment is,

$A= 1000 \cdot (1.06)^t$

Answer 2

You can use A=P(1+(r/n))^(nt)
n=homany times it is compounded a year: 1 annually 
t=time in years
r=rate: 6% or .06
A=Final Amount
P=principle amount

A=1000(1+(.06/1))^(1*t)