Question

You deposit $100 in an investment account that earns 3% annual interest compounded monthly. You also have a savings account with a constant balance of $200.Write a function $B$ that represents the total balance of the two accounts after $t$ years. Then find and interpret $B(5)$ .

Answer 1

A. m(t)=100(1+0.03)^t
B. m(5)=100(1.03)^5

m(5)=115.9 or 116 rounded up.