Question

A savings account compounds interest, at a rate of 17%, once a year. John puts $1,000 in the account as the principal. How can John set up a function to track the amount of money he has?

Answer 1

Answer:

The function to track the amount is $y = a (1+r)^{t}$ and the value of amount is $1170 .

Step-by-step explanation:

As given

A savings account compounds interest, at a rate of 17%, once a year. John puts $1,000 in the account as the principal.

The function is defined as

$y = a (1+r)^{t}$

Where a is the principle value , r is the rate of interest in the decimal form and t is the time in years .

P = $1000

17% is written in the decimal form .

$= \frac{17}{100}$

= 0.17

r = 0.17

t = 1 years

Put all the values in the function

$y = 1000(1+0.17)^{1}$

$y = 1000(1.17)^{1}$

$y = 1000\times 1.17$

y = $1170

Therefore the function to track the amount is $y = a (1+r)^{t}$ and the value of amount is $1170 .

Answer 2

The amount after t years be can be found by using the following function of t:
$f(t)=1000(1+0.17)^{t}$