A savings account compounds interest, at a rate of 17%, once a year. John puts $1,000 in the account as the principal. How can John set up a function to track the amount of money he has?
A(x) = 1000(17)x where 17 is the interest rate A(x) = 1000(.17)x where .17 is the interest rate A(x) = 1000(1 + .17)x where .17 is the interest rate A(x) = 1000(1 + 17)x where 17 is the interest rate

Question

A savings account compounds interest, at a rate of 17%, once a year. John puts $1,000 in the account as the principal. How can John set up a function to track the amount of money he has?
A(x) = 1000(17)x where 17 is the interest rate A(x) = 1000(.17)x where .17 is the interest rate A(x) = 1000(1 + .17)x where .17 is the interest rate A(x) = 1000(1 + 17)x where 17 is the interest rate

anonymous · Answer

@robtobey

anonymous · Answer

$$A(x)=1000(1+.17)^{x}$$ Let x = the number of years.

If you want to convert a percent to decimal you either divide the percent by 100, or you can move the decimal point to the left two places.