Question

Ava deposited $14 in a savings account that earns 2.7% simple interest. What would the graph look like?

Answer 1

Deposited amount = $14.

Rate of interest =  2.7%

In decimals 2.7 could be written by dividing 2.7 by 100, we get

0.027.

Interest earned each year = 2.7% of $14 = 0.027*14 = $0.378.

We can make a table to balance by after each year.

First year balance: First year interest + Deposited amount = 0.378 +14 = $14.378.

Second year balance: Second year interest + Deposited amount = 2*0.378 +14 = 0.756+ 14 = $14.756.

Third year balance: Third year interest + Deposited amount = 3*0.378 +14 = 1.134+ 14 = $15.134.

We get four coordinates to graph A(0,14), B(1, 14.378) , C(2, 14.756) and D(3, 15.134).

Plotting those coordinates of the points A, B, C and D on the graph.