Ask Question
10 July, 18:05

Martha makes an investment of $500 in an account that pays 6% interest compounded monthly. Write an equation you could use to determine the interest she earns in t years

+3
Answers (1)
  1. 10 July, 18:30
    0
    Step-by-step explanation:

    We would apply the formula for determining compound interest which is expressed as

    A = P (1+r/n) ^nt

    Where

    A = total amount in the account at the end of t years

    r represents the interest rate.

    n represents the periodic interval at which it was compounded.

    P represents the principal or initial amount deposited.

    t represents the number of years.

    From the information given,

    P = $500

    r = 6% = 6/100 = 0.06

    n = 12 because it was compounded 12 times in a year.

    An equation that could be used to determine the interest she earns in t years is

    A = 500 (1+0.06/12) ^12 * t

    A = 500 (1+0.005) ^12t

    A = 500 (1.005) ^12t
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Martha makes an investment of $500 in an account that pays 6% interest compounded monthly. Write an equation you could use to determine the ...” in 📗 Mathematics if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers