Question

An account is opened with $7,595.96 with a rate of increase of 2% per year. After 1 year, the bank account contains $7,746.90. Assuming no deposits or withdrawals are made, which equation can be used to find y, the amount of money in the account after x years? (Round money values to the nearest penny.)

Answer 1

7595.96 × 0.02 × x = y

Explanation:

1. We start with $7595.96.

2. The interest is 2% or 0.02

3. Using this formula - P(Principle) x R(Rate) x T(Time) we pluck in the numbers.

4. 7595.96(Principle) x 0.02(Rate) x x(Time) = y(amount of money in the account after x years).