Samantha puts an initial $500 into a savings account. The account has a 4% annual compound interest rate. What is the function that best represents Samantha's account and how much does she have in savings after 5 years? Round your answer to the nearest dollar.
Hint: Use the formula, f(x) = P(1 + r)x.

Question

Samantha puts an initial $500 into a savings account. The account has a 4% annual compound interest rate. What is the function that best represents Samantha's account and how much does she have in savings after 5 years? Round your answer to the nearest dollar.
Hint: Use the formula, f(x) = P(1 + r)x.

anonymous · Answer

Here are the answer options .

 f(x) = 500(1.4)x, $2,689
 f(x) = 500(0.04)x, $512
 f(x) = 500(1.04)x, $608
 f(x) = 500(1.04)x, $527

anonymous · Answer

PLease help!

vocaloid · Answer

hints:

r = interest rate = 0.04
P = principal amount = 500

your formula is f(x) = P(1+r)^x

anonymous · Answer

OK thank you! So would it be c?

vocaloid · Answer

not quite, we still need to check whether it's C or D

when x = 5, what does 500(1.04)^x = ?

anonymous · Answer

oh ok 1 min

anonymous · Answer

It is C. Because when i put 5 for the exponent it came out to be 608.32645. Correct?

vocaloid · Answer

right! good job

anonymous · Answer

Yay! Thank you so much!