Question

A teacher puts $300 into a savings account for 12 years. Use the formula a = p(1 + rt)a=p(1+rt) to determine the solution for rr. A) r =300a−12 B)r = 3600a−12 C)r=a/300-12 D)r=a/3600-1/12

Answer 1

The formula for compound interest is a = p(1 + rt). In this case, the teacher puts $300 into a savings account for 12 years. The solution for r is r = a/300 - 12.

Step-by-step explanation:

The formula for compound interest is given by the equation:

a = p(1 + rt)

Where:

• a is the final amount after time t
• p is the initial principal (amount)
• r is the annual interest rate (expressed as a decimal)
• t is the time in years

In this case, the teacher puts $300 into a savings account for 12 years. To determine the solution for r, we need to rearrange the formula:

r = (a/p - 1)/t

Substituting the given values:

r = ($300/a - 1)/12

Therefore, the correct answer is C) r = a/300 - 12.