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olga nikolaevna [1]
3 years ago
9

Gerardo has just invested in a bond worth $470 that is expected to increase in value by 6% per year. Write the equation used to

determine the value of his bond after t years.
Mathematics
1 answer:
Viefleur [7K]3 years ago
3 0

Answer:

Step-by-step explanation:

We would apply the formula for determining compound interest which is expressed as

A = P(1+r/n)^nt

Where

A = total amount in the account at the end of t years

r represents the interest rate.

n represents the periodic interval at which it was compounded.

P represents the principal or initial amount deposited

From the information given,

P = $470

r = 6% = 6/100 = 0.06

n = 1 because it was compounded once in a year.

Therefore, the equation used to determine the value of his bond after t years is

A = 470(1 + 0.06/1)^1 × t

A = 470(1.06)^t

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