You have a savings account that offers an annual simple interest rate of 7%. You put $400 into the account. Select the graph showing the total interest you earn after 1, 2, 3, and 4 years.

Question

Mathematics

Kayden Holden

21 May, 13:19

You have a savings account that offers an annual simple interest rate of 7%. You put $400 into the account. Select the graph showing the total interest you earn after 1, 2, 3, and 4 years.

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Answers (1)

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Liana Higgins · Answer 1

Line: I (x) = 28x+400

Step-by-step explanation:

Initial amount = $400

Interest rate = 7% simple

Total interest:

Year 1 = $400+7% = 400 + 400*0.07 = 400+28 = 428 Year 2 = $400+2*7% = 400+400*0.07*2 = 400+56 = 456 Year 3 = $400+7%*3 = 400+400*0.07*3 = 400+84 = 484 Year 4 = $400+7%*4 = 400+400*0.7*4 = 400+112 = 512

The graph for this function will be a line with equation:

I (x) = 400+400*0.07x = 28x+400, where I - interest, x - year