Question

Write a linear equation for each of these simple investments:

Answer 1

Explanation

We must write an equation for the investment of $2000 at 3%.

Given this data, we assume that:

• the principal amount is P₀ = $2000,

,

• the annual interest rate is r = 3% = 0.03%.

The investment after t years is given by:

$P(t)=P_0\cdot(1+r\cdot t)=\text{\ 2000}\cdot(1+0.03\cdot t)=\text{\ 2000}+\text{\ 60}\cdot t.$Answer$P(t)=\text{\ 2000}+\text{\ 60}\cdot t.$