You deposit $1600 in a bank account with a 4% annual interest. ( is this a trick ?)?
There's no question here. But the statement makes sense.
I have no idea what any of this means, I'm suppose to create an equation,label what x & y represent and graph it. HELP!
x years after depositing $P, the balance y can be found using the formula
y = P(1+r)^x
so, in your case, using compound interest,
y = 1600*1.04^x
or, for simple interest,
y = 1600(1+.04x)
I'm gonna fail this class ,
I just don't get it.
Question: You deposit $1,600 in a bank account. The account pays 3% annual interest compounded monthly. Find the balance after 5 years. Round to 2 decimal places.
I need to find the answer
No, this is not a trick. It's a question about calculating interest on a deposit in a bank account. To find out how much interest you will earn on the deposit, you need to use the formula for simple interest.
The formula for simple interest is:
Interest = Principal (deposit) * Interest Rate * Time
In this case, the principal (deposit) is $1600 and the interest rate is 4% (which can be written as 0.04 in decimal form). However, the question does not mention the time period for which the interest will be calculated. So, to give you an accurate answer, I need to know the time period (e.g. one year, six months, etc.).
Once you provide the time period, I can calculate the interest you will earn on your deposit.