An account earns simple interest. Find the annual interest rate.
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Answer:
A(t) = 200+15t(1+0.02)^{t}
Step-by-step explanation:
Since the interest is calculated on the new balance every year.
Hence the formula used for compound interest is:
A = P(1+^{nt}
where, A =Amount after t years
P =Principal amount
200 is the initial balance and Since, here the $15 is added to the balance each year. Therefore, P = 200+15t
r = rate each year (0.02)
t = time (in years) (t)
n = no. of times the interest is compounded in a year (n=1)
Therefore, the recursive formula is:
A(t) = 200+15t(1+0.02)^{t}