Question

good evening! Can someone please answer this, ill give you brainliest and your earning 50 points. Would be very appreciated.

Answer 1

The initial investment is compounded annually 3.25%

That means the equation will look like this:

    $500(1 + 0.0325) = 500 + 500 * 0.0325$

• 500(1 + 0.0325) is the initial investment plus the initial investment times the percentage which in the end will give you the total amount after the investment is compounded

However, we want it compounded yearly for every year after the first initial investment

  ---> $500(1+0.0325)^t$

Therefore the equation is the amount of money in the account after 't' year or the second choice.

Hope it helps!

p.s. the diagram I attached will help you understand where I got my equations from

Answer 2

Compare to the compound interest formula

$\\ \rm\longmapsto P(1+r)^nt$

• nt is number of years

now

• P(t)=500(1+0.0325)^t

t years is correct

Option B