Question

Samuel received $250 as prize money for winning the St. Peterson High School Badminton Tournament. The money was deposited in a special scholarship account that offered an annual interest of 1.8% compounded semiannually. The amount he will have in the accoutnt after t years can be calculated using the expression below. Use the given expression to complete the statements below. The expression is the of the amount initially deposited and the of one and the rate of increase raised to the number of .

Answer 1

Complete Question

Samuel received $250 as prize money for winning the St. Peterson High School Badminton Tournament. The money was deposited in a special scholarship account that offered an annual interest of 1.8% compounded semiannually. The amount he will have in the accoutnt after t years can be calculated using the expression below.

$250(1+\frac{0.018}{2})^{2t}$

Use the given expression to complete the statements below.

The expression is the___(Product , Sum  , Quotient , Square) of the amount initially deposited and the____(Quotient , Product , Difference , Sum)  of one and the rate of increase raised to the number of ___.(Compounding Periods , Years, Months)

Answer:

• Product
• Sum
• Compounding Periods

Step-by-step explanation:

For an amount invested at compound interest at a rate of r% with period for t years,

Amount $=P(1+\frac{r}{k})^{tk}$

Comparing with the given expression: $250(1+\frac{0.018}{2})^{2t}$

Period =2

Rate =0.018

Total Compounding Period =2 X t, where t=Number of years

Therefore:

The expression is the Product of the amount initially deposited and the Sum of one and the rate of increase raised to the number of Compounding Periods .