Those two numbers are 30 and 12.
30+12=42
and
30*12=360
:P
N = 4.2m
Sorry for my bad writing but this is the explanation and answer.
A(t) = 500(1.0325)^t
500 is the initial deposit, t=0, A(0)=500
3.25% is the interest rate
t is in years
Let's go through the choices.
After 1 year ... A(1)=500. Don't check; it's A(0) that equals 500, A(1) is bigger.
The rate is 1.03%. Don't check; the base being exponentiated is 1 plus the rate.
Rate is 3.25%. TRUE that's why we have 1 + 0.0325 as the base.
Rate is 5%. Don't check.
Only one right answer.
