ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Garrett chooses to invest $1800 in a simple interest account. The account earns 3% interest over the years. Which function represents Garett’s investment?
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P(t)=1800+54t
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P(t)=1800(0.03)t
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P(t)=1800+0.03t
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P(t)=1800(54)t
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Explanation:
Detailed explanation-1: -Summary: The future value of $10, 000 on deposit for 2 years at 6% simple interest is $11200.
Detailed explanation-2: -First, start with the simple interest formula ( I = P R T ) . Write down what you know. Next, fill in what you know into the simple interest formula and solve for . Then, add this interest to your original investment.
Detailed explanation-3: -Simple interest is calculated with the following formula: S.I. = P × R × T, where P = Principal, R = Rate of Interest in % per annum, and T = Time, usually calculated as the number of years. The rate of interest is in percentage r% and is to be written as r/100.
There is 1 question to complete.