Question

A savings account compounds interest, at a rate of 17%, once a year. John puts $1,000 in the account as the principal. How can John set up a function to track the amount of money he has?

Answer 1

The amount after t years be can be found by using the following function of t:

`f(t)=1000(1+0.17)^(t)`

Answer 2

The function to track the amount is
`y = a (1+r)^(t)` and the value of amount is $1170 .

Explanation:

As given

A savings account compounds interest, at a rate of 17%, once a year. John puts $1,000 in the account as the principal.

The function is defined as

`y = a (1+r)^(t)`

Where a is the principle value , r is the rate of interest in the decimal form and t is the time in years .

P = $1000

17% is written in the decimal form .

`= (17)/(100)`

= 0.17

r = 0.17

t = 1 years

Put all the values in the function

`y = 1000(1+0.17)^(1)`

`y = 1000(1.17)^(1)`

`y = 1000* 1.17`

y = $1170

Therefore the function to track the amount is
`y = a (1+r)^(t)` and the value of amount is $1170 .