Question

Josiah invests $360 into an account that accrues 3% interest annually. Assuming no deposits or withdrawals are made, which equation represents the amount of money in Josiah’s account, y, after x years?
A y = 360(0.03)x


B y = 360(1.3)x


C y = 360(1.03)x


D y = 360(0.3)x

Answer 1

The answer would be: C. This type of problem indicates exponential growth by 3% after a given number of years. Choices A and D show exponential decay, and choice C shows 30% instead of 3% - making these answers incorrect.