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anonymous

  • one year ago

Samantha puts an initial $500 into a savings account. The account has a 4% annual compound interest rate. What is the function that best represents Samantha's account and how much does she have in savings after 5 years? Round your answer to the nearest dollar. Hint: Use the formula, f(x) = P(1 + r)x.

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  1. anonymous
    • one year ago
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    f(x) = 500(1.4)x, $2,689 f(x) = 500(0.04)x, $512 f(x) = 500(1.04)x, $608 f(x) = 500(1.04)x, $5

  2. anonymous
    • one year ago
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    I will fan and give a medal please help me

  3. anonymous
    • one year ago
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    f(x) = 500(1.4)x, $2,689 f(x) = 500(0.04)x, $512 f(x) = 500(1.04)x, $608 f(x) = 500(1.04)x, $5

  4. anonymous
    • one year ago
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    Are these given answers to choose from?

  5. anonymous
    • one year ago
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    Yes

  6. anonymous
    • one year ago
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    But I have no idea where to start

  7. anonymous
    • one year ago
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    First I thought that it would be f(x)=500(40%)^5

  8. anonymous
    • one year ago
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    Okay well, lets think of what we already know. Using the hint and the given answers we already know that P represents the amount Samantha put in already. Which is $500 right?

  9. anonymous
    • one year ago
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    Now in the hint it shows to add R to 1. What do you think R represents?

  10. anonymous
    • one year ago
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    Are you sure that in the parenthesis of hint you add 1 to r?

  11. anonymous
    • one year ago
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    I don't understand

  12. anonymous
    • one year ago
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    What is r

  13. mathstudent55
    • one year ago
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    Start with P amount and r interest rate. r is written as a decimal. For example, if the interest rate is 5%, you write it as 0.05 After 1 year, you have P(1 + r) After 2 years , you have P(1 + r)(1 + r) = P(1 + r)^2 After 3 years, you have P(1 + r)^2(1 + r) = P(1 + r)^3 After 4 years, you have P(1 + r)^3(1 + r) = P(1 + r)^4 If you follow this pattern, after x years, you have P(1 + r)^x Notice that this is the formula the problem gives you in the hint. Now replace P with 500 and r with 0.04, but leave x in. What formula do you have now? Finally use the new formula with x = 5 and evaluate it.

  14. anonymous
    • one year ago
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    Thank you so much foryour help #mathstudent55 how do i give you a medal

  15. mathstudent55
    • one year ago
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    You're welcome. To give a medal, click on the blue box "Best Response" of the response you want to give a medal to.

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