Question

Michael invested 5,000 in an account that has a 5.5% annual interest rate. What equation best describes investment after T years?

Answer 1

Answer:

V = 5000 +  275*T   for simple annual interest

or:   A = 5000 * (1.055)^T   for an annual compound interest

Step-by-step explanation:

I assume this is a simple interest rate.  If not I will give the one for compound interest.

V = 5000 + 5000* 0.055 * T      (Value of account after T years)

V = 5000 +  275*T   for simple annual interest

or:   A = 5000 * (1.055)^T   for an annual compound interest