Question

Stephanie invested money in an account where interest is compounded every year. She made no withdrawals or deposits. The function A(t) = 424(1 + 0.06)t represents the amount of money in the account after t years. How much money did Stephanie originally invest?

Answer 1

Answer: Stephanie originally invest $424, where interest is compounded every year.

Answer 2

Answer: Stephanie originally invest $424, where interest is compounded every year.

Explanation:

Since we have given that

`A(t)=424(1+0.06)^t`

Since it is the formula for Compound interest,

Here, Principal amount = $424

Rate of growth = 6%

Number of years = t years

Hence, Stephanie originally invest $424, where interest is compounded every year.