Samantha puts an initial $500 into a savings account. The account has a 4% annual compound interest rate. What is the equation that best represents Samantha's account?

Hint: Use the formula y = P(1 r)x.

y = 500(1.4)x
y = 500(0.04)x
y = 500(1.04)x
y = 500(0.4)x

Question

Samantha puts an initial $500 into a savings account. The account has a 4% annual compound interest rate. What is the equation that best represents Samantha's account?

Hint: Use the formula y = P(1   r)x.

y = 500(1.4)x
 y = 500(0.04)x
 y = 500(1.04)x
 y = 500(0.4)x

Five · Answer

what do you think

Mercury · Answer

using the hint they give you y = P(1 + r)^x
P is the principal (initial amount invested) and r is the interest rate, converted to a decimal. plug in the appropriate values from the problem into the formula