Question

Jenny invests $2,000 at an interest rate of 5%. The amount of money, , in Jenny’s account after t years can be represented using the equation

Answer 1

A= 2000*(1+0.05)^t

Explanation: The equation represents the compound interest formula where A is the amount of money in the account, P is the principal amount (initial investment) which is $2,000, r is the interest rate (expressed as a decimal) which is 5% or 0.05, and t is the number of years. The formula shows that the account balance will increase by 5% each year, meaning the interest will be added to the principal and the new interest will be calculated on the new balance.

Explanation: