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A savings account compounds interest, at a rate of 25% once a year. Eve puts 500 in the account as the principal. How can eve set up a function to track the amount of money she has?

Respuesta :

f(x) = 500(1.25)^x would be the function

Answer:

Function to track the amount of money Eve has is [tex]A(n)=500(\frac{5}{4})^n[/tex]

Step-by-step explanation:

Given:

Principal Amount in the account, P = $ 500

Rate of interest, r = 25%

Interest is compounded annually.

To write a function to track amount in the account.

We use the Formula of amount of the compound interest.

[tex]A=P(1+\frac{r}{100})^n[/tex]

By, Substituting given values we have

Amount in the account, [tex]A=500(1+\frac{25}{100})^n[/tex]

[tex]A=500(\frac{5}{4})^n[/tex]

where, n is number of year.

Therefore, Function to track the amount of money Eve has is [tex]A(n)=500(\frac{5}{4})^n[/tex]

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