Solve the problem.
-Suppose that $90,000 is invested at 4% interest, compounded annually. Find a function A for the amount in the account after t years.
A) $\mathrm { A } ( \mathrm { t } ) = \$ 90,000 ( 1.04 ) ^ { \mathrm { t } }$
B) $\mathrm { A } ( \mathrm { t } ) = \$ 90,000 ( 0.04 ) ^ { \mathrm { t } }$
C) $\mathrm { A } ( \mathrm { t } ) = \$ 90,000^{0.04} \mathrm { t }$
D) $\mathrm { A } ( \mathrm { t } ) = \$ 90,000 ^ { 1.04 \mathrm { t } }$

Question

Solve the problem.
-Suppose that $90,000 is invested at 4% interest, compounded annually. Find a function A for the amount in the account after t years. 
A) $\mathrm { A } ( \mathrm { t } ) = \$ 90,000 ( 1.04 ) ^ { \mathrm { t } }$
B) $\mathrm { A } ( \mathrm { t } ) = \$ 90,000 ( 0.04 ) ^ { \mathrm { t } }$
C) $\mathrm { A } ( \mathrm { t } ) = \$ 90,000^{0.04} \mathrm { t }$
D) $\mathrm { A } ( \mathrm { t } ) = \$ 90,000 ^ { 1.04 \mathrm { t } }$

Quizplus · Accepted Answer

The formula for compound interest is $A = P(1 + r)^t$, where $A$ is the amount of money accumulated after $n$ years, including interest, $P$ is the principal amount (the initial amount of money), $r$ is the annual interest rate (decimal), and $t$ is the time the money is invested for in years. In this case, $P = \$90,000$, $r = 0.04$ (4% as a decimal), and $t$ is the number of years. Therefore, the correct function is $A(t) = \$90,000(1.04)^t$.

Solve the Problem A(t)=$90,000(1.04)t\mathrm { A } ( \mathrm { t } ) = \$ 90,000 ( 1.04 ) ^ { \mathrm { t } }A(t)=$90,000(1.04)t

Solve the Problem $\mathrm { A } ( \mathrm { t } ) = \$ 90,000 ( 1.04 ) ^ { \mathrm { t } }$