A savings account compounds interest, at a rate of 25%, once a year. Eve puts $500 in the account as the principal. How can Eve

Question

3 years ago

10

A savings account compounds interest, at a rate of 25%, once a year. Eve puts $500 in the account as the principal. How can Eve

set up a function to track the amount of money she has? (1 point)
Select one:
a. A(x) = 500(25)x where 25 is the interest rate
b. A(x) = 500(.25)x where .25 is the interest rate
c. A(x) = 500(1 + 25)x where 25 is the interest rate
d. A(x) = 500(1 + .25)x where .25 is the interest rate

Mathematics

1 answer:

vladimir1956 [14] · Answer 1 · 2022-04-02T03:49:22+03:00

vladimir1956 [14]3 years ago

5 0

Year 1: 500 + 0.25*500 = 500 [1 + 0.25]

Year 2: 500*[ 1 + 0.25] * [1 + 0.25] = 500 [1 + 0.25]^2

Year x: 500 [1 + 0.25]^x

Option d: A(x) = 500[1 + .25]^x, where .25 is the interest rate