Question

Chet has $1200 invested in a bank account modeled by the function P(n) = 1200(1.002)

Answer 1

Answer: 3) R(n) = 1200(1.002)n - 100n

Explanation:

After n months, which function represents Chet’s net worth, R(n)?

(1) R(n) = 1200(1.002)n + 100n

(2) R(n) = 1200(1.002)12n + 100n

(3) R(n) = 1200(1.002)n - 100n

(4) R(n) = 1200(1.002)12n - 100n

Answer: 3) R(n) = 1200(1.002)n - 100n

Net worth is the amount of his savings minus his debt,

Everything in the problem is in terms of months, so there is no need to multiply the exponent by 12, which would convert n years into months.