Question

Jessica opened a bank account that earns 2 percent interest compounded annually. Her initial deposit was $100, and she uses the expression $100(x)^t to find the value for the account after t years.
what is the value of x in the expression?

Answer 1

Answer:

x = 1.02.

Step-by-step explanation:

The x is a factor worked out from  the annual interest  written as a decimal fraction.

So we have  2% = 2/100 = 0.02.

The amount at the end of the first year is $100 + 0.02*100

= $100* 1.02,  and in  the second year it will be $100* 1.02^t  where t = 2 and so on.

So we see that x in the given expression is 1.02.