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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?

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Kalahira

The future amount of money that is invested currently at a certain interest that is compounded annually is calculated through the equation,

               F = P x (1 + i)^n

where F is the future worth, P is the present worth, i is the interest rate, and n is the number of years. Substituting the known values and variables in the given,

F = ($360)(1.03)^x

Answer:  \(y = 360(1.03)^x\)

Step-by-step explanation:

Since, the principal amount of the money = $ 360

Annual rate of interest = 3%

Thus, the amount after x years which is increased by 3 %,

\(= 360(1+\frac{3}{100} )^x\)

\(= 360(1+0.03 )^x\)

\(= 360(1.03 )^x\)

Since, this amount represented by y,

Thus, the required equation that represents the amount of money in Josiah’s account, y, after x years is,

\(y = 360(1.03 )^x\)

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