Question

Iris's checking account pays simple interest at 3% per year. She has $185 in her account. Write a linear function to model the amount of money in her checking account at any time t.

Answer 1

The linear function to model the amount of money in her checking account at any time t is 185 + 5.55t.


What is an interest?
An interest simply means the extra amount that's borrowed when one borrows money or when one saves.

In this case, the checking account pays simple interest at 3% per year. She has $185 in her account.


The amount of money in the account at anytime will be:
= 185 + (PRT/100)
P = principal
R = rate
T = time

= 185 + [(185 × 3 × t)/100]
= 185 + 5.55t
The function is 185 + 5.55t.