Question

Brigitte deposits $1000 in a savings account that earns 1.3% compound interest. Which function models the total amount of money Brigitte has over time, t ?

Answer 1

The function that models the total amount of money Brigitte has over time, t, is given by:

Total Amount = 1000 × (1 + 0.013)^t

Where t is the number of years since the deposit was made.

Answer 2

The formula for compound interest is:

A = P(1 + r/n)^nt

where:

A is the total amount of money after t years,

P is the initial principal or deposit amount (in this case $1000),

r is the annual interest rate as a decimal (in this case 1.3% or 0.013),

n is the number of times interest is compounded per year (in this case, let's assume it's compounded annually), and

t is the number of years.

So, the function modeling the total amount of money Brigitte has over time, t, would be:

A = $1000(1 + 0.013)^t

This function shows how the amount of money in the savings account will increase as time goes on due to compound interest.