Brad wants to open a new savings account. He finds one that returns 3% on his investment each year. Use the variable to write a formula for the final balance after one year. Also b = final balance, x = initial investment, and r = return rate.

Question

Mathematics

Omari

5 February, 13:22

Brad wants to open a new savings account. He finds one that returns 3% on his investment each year. Use the variable to write a formula for the final balance after one year. Also b = final balance, x = initial investment, and r = return rate.

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Herring · Answer 1

Return rate, r = 3% = 0.03

x = initial investment

b = final balance

After 1 year, the balance i

b = initial investment + interest

b = x + r*x = (1 + r) * x

Because r = 0.03,

b = 1.03x (after 1 year)