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8090 [49]
2 years ago
7

1. Jeremy has $12000 cash to invest in the bank compounded at 4% interest annually.

Mathematics
1 answer:
gavmur [86]2 years ago
8 0

Answer:

A(x) = 12000(1.04)^x

Step-by-step explanation:

Compound interest:

The compound interest formula is given by:

A(t) = P(1 + \frac{r}{n})^{nt}

Where A(t) is the amount of money after t years, P is the principal(the initial sum of money), r is the interest rate(as a decimal value), n is the number of times that interest is compounded per year and t is the time in years for which the money is invested or borrowed.

$12000 cash

This means that P = 12000

Compounded at 4% interest annually.

This means that r = 0.04, n = 1

What equation will calculate the value in x years?

A(t) = P(1 + \frac{r}{n})^{nt}

A(x) = P(1 + \frac{r}{n})^{nx}

A(x) = 12000(1 + 0.04)^x

A(x) = 12000(1.04)^x

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