Question

Which of the following investments could be represented by the function A = 250(1 + 0.08/12)12 × 4?

Answer 1

hello,

the first term is 250 so this is the initial invested amount

$(1+\dfrac{0.08}{12})^{12}=(1+\dfrac{8\%}{12})^{12}$

is to compute 8% annual interest compounded monthly (there are 12 months in a year)

and then multiply by 4 means that it is computed for 4 years so

finally the answer is

$250 is invested at 8% annual interest compounded monthly for 4 years

hope this helps