Question

A bank offers a savings account that earns 0.5% interest each month.
Write an equation for the balance of the savings account after Y months.
Given an initial deposit of 500$ what will the account balance be after 15 months.

Answer 1

Answer

Step-by-step explanation:

This is exponential growth, so we would use the following equation

y=a(b)^x

500(1.005)^15

1. Initial amount is $500, since that's what we started with.

2. Add the following percentage by 100%

100%+0.5%= 1.005

3. We need to find the account balance after 15 months so raise it to the 15th power.

y= 500(1.005)^15

The balance after 15 months will be $538.84.

bye~~