Question

A bank account earns interest at a rate of 3. 5% per year in other words interested in value by the percent and starts with a balance of $350. Which of the following equations would the accounts worth, W,as a function of the numbers of years, y, it has been gaining interest?

1) W= 350(1. 035)y

2)W=350(0. 35)y

3) W=1. 035y+350

4) W=1. 35y+350

Answer 1

Answer: 1) W= 350(1. 035)y

Explanation:

interest formula is W=p(1+r)y

p= starting amount
r= rate in decimal