Question

Write an exponential equation for the following scenario, $1000 is deposited into an account that earns 5% interest.

Answer 1

The formula to find the final amount A, compounded yearly for x year at r% when p is the initial amount :

$A=p(1+r)^x$

Given that, $1000 is deposited into an account that earns 5% interest.

So, p = 1000 and r =5% = 5/100= 0.05.

Next step is to plug in these values in the above equation to get the equation.

Hence,

$A = 1000(1+0.05)^x$

=$1000(1.05)^x$

So, the correct choice is C) y=1000(1.05)^x.

Hope this helps you!