Sam opened a savings account that accrues compound interest at a rate of 3% annually. Let P be the initial amount Sam deposited and let t be the number of years the account has been open.
Write an equation to find A, the amount of money in the account after t years. Assume that Sam made more additional deposits and no withdrawals.
My answer is a=p*3%^t
is this right?
IT hurts it is so wrong. Memorize this formula
amount=Initialamount(1+i)^t where i is DECIMAL (.O3 here), t is the years elapsed.
Ah, the wonderful world of compound interest! Unfortunately, your equation is not quite accurate. To find the amount of money in the account after t years, you'll need to use the formula:
A = P(1 + r)^t
Where:
A is the amount of money in the account after t years
P is the initial amount deposited by Sam
r is the interest rate (in decimal form)
t is the number of years the account has been open
In this case, since the interest rate is 3% annually (or 0.03 in decimal form), the correct equation would be:
A = P(1 + 0.03)^t
So keep in mind to properly show your calculations, or that compound interest might just clown around with your savings!
Your answer is almost correct, but there is a small error in the formula. The correct equation to find A, the amount of money in the account after t years, is:
A = P * (1 + r)^t
Where:
A = Amount of money in the account after t years
P = Initial amount Sam deposited
r = Annual interest rate (expressed as a decimal)
t = Number of years the account has been open
In this case, the annual interest rate is 3%, or 0.03 as a decimal, so the correct equation becomes:
A = P * (1 + 0.03)^t
So, the correct equation to find the amount of money in the account after t years is A = P * (1 + 0.03)^t.
Your equation to find the amount of money in the account after t years seems almost correct, but it is missing an important component. The correct equation to find the amount of money A in the account after t years should be:
A = P * (1 + r)^t
Where:
A represents the amount of money in the account after t years.
P represents the initial amount Sam deposited into the account.
r represents the interest rate, which is given as 3% or 0.03 in decimal form.
t represents the number of years the account has been open.
So, the correct equation would be:
A = P * (1 + 0.03)^t
This equation takes the initial deposit P and multiplies it by the compound interest factor (1 + r)^t to calculate the total amount in the account after t years.
Remember that compound interest is applied continuously over time, so it's important to use the correct formula to make accurate calculations.