Question

Kaylee deposited $1,450 in an account that earns 2.596 interest compounded annually. Which function represents the situation, where tis
the time in years?

fit) = 1450(2.5)

f(t) = 1450(1.25)

FO) = 1450(.025)

f(t) = 1450(1,025)

Answer 1

Answer:

$f(t) = 1450(1.025)^{t}$

Step-by-step explanation:

Given

$P =1450$ -- principal

$r = 2.5\%$ --- rate

$n = 1$ --- compounded once a year

Required

Determine the function for compound interest

Compound interest f(t) is calculated as:

$f(t) =P(1 + r/n)^{nt$

So, we have:

$f(t) = 1450(1 + 2.5\%/1)^{1 * t}$

$f(t) = 1450(1 + 2.5\%)^{t}$

$f(t) = 1450(1 + 0.025)^{t}$

$f(t) = 1450(1.025)^{t}$