Question

Danielle plans to open a savings account with $2000. The bank offers 8% interest,compounded yearly. Which of the following functions can be used to find the projectedvalue of the account after t years?A.V (t) = 2,000 (1.08t)B. V (t) = 2,000 (1.8)^tC.V (t) = 2,000 (1.08)^tD. V (t) = 2,000 (1.008)^t

Answer 1

the formula for the compound interest is given as follows,

$A=P(1+\frac{R}{100})^t$

here P = 2000 , R = 8 % , t = t.

so the value(V) is

$\begin{gathered} V=2000(1+\frac{8}{100})^t \\ V=2000(1+0.08)^t \end{gathered}$$V=2000(1.08)^t$

so the answer is option C