Question

osiah invests $360 into an account that accrues 3% interest annually. Assuming no deposits or withdrawals are made, which equation represents the amount of money in Josiah’s account, y, after x years? y = 360(1.3)x y = 360(0.3)x y = 360(0.03)x y = 360(1.03)x

Answer 1

The standard compound interest formula is

Future value after x years with an annual interest of i

=Present Value (1+i)^x [which is an exponential function]

for given present value of $360. interest=0.03 (3%) and a total of x years, above equation reduces to

Future value after x years

=360(1.03^x)