A savings account compounds interest, at a rate of 22%, once a year. George puts $750 in the account as the principal. How can George set up a function to track the amount of money he has?

a. A (x) = 750 (1 +.22) x where. 22 is the interest rate

b. A (x) = 750 (22) x where 22 is the interest rate

c. A (x) = 750 (.22) x where. 22 is the interest rate

d. A (x) = 750 (1 + 22) x where 22 is the interest rate

Question

Mathematics

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5 August, 09:20

A savings account compounds interest, at a rate of 22%, once a year. George puts $750 in the account as the principal. How can George set up a function to track the amount of money he has?

a. A (x) = 750 (1 +.22) x where. 22 is the interest rate

b. A (x) = 750 (22) x where 22 is the interest rate

c. A (x) = 750 (.22) x where. 22 is the interest rate

d. A (x) = 750 (1 + 22) x where 22 is the interest rate

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Answers (1)

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Cheyenne Hicks · Answer 1

George shouldn't think too far.

He should use the formula for Compound Interest.

Amount in compound interest, A = P (1 + r/100) ⁿ.

Where A = Amount, P = Principal, r is the rate per year, n = number of years.

Note: the expression (1 + r/100) is raised to power n.

From George's problem: P = 750, r = 22, I guess number of years, n = x

A (x) = 750 (1 + 22/100) ˣ

A (x) = 750 (1 + 0.22) ˣ

From your options I can't see an answer. Except the expression of option (A) is actually raised to power x, and not times x as stated in the option.