Q:

Meredith invested $5,500 into an account that earned 5% interest per year. When she cashed out the investment to use it as a down payment for a new car, it was worth a total of $7,739.05.Which equation describes Meredith's investment based on t, the number of years she kept the account open?

Accepted Solution

A:
Answer:  B. [tex]7739.05=5500(1.05)^t[/tex]Step-by-step explanation:The formula to find the compound amount (compounded yearly):-[tex]A=P(1+r)^t[/tex], where P is the principal amount invested,  is the rate of interest and t is time period.As per given , we haveP=$5500    ,  r=5% = 0.05   and A =  $7,739.05.Substitute all the values in the formula , we get[tex]7739.05=5500(1+0.05)^t[/tex][tex]7739.05=5500(1.05)^t[/tex]Hence, the equation describes Meredith's investment based on t, the number of years she kept the account open : [tex]7739.05=5500(1.05)^t[/tex]