Question

a bank account that earns 1% interest each month has a balance of $1,500. any interest is deposited into the account, and no further deposits or withdrawals are made.
select an expression that would find the balance after 2 years
$y = 1500(1)^{2}$
$y = 1500(1.01)^{2}$
$y = 1.01(1500)^{24}$
$y = 1500(1.01)^{24}$
$y = 1500(0.99)^{12}$

Explanation:

Step1: Identify compound interest formula

The formula for compound interest (compounded monthly) is $A = P(1 + r)^n$, where $P$ is principal, $r$ is monthly rate, $n$ is total months.

Step2: Define variables

$P = 1500$, $r = 0.01$, $n = 2 \times 12 = 24$

Step3: Substitute values into formula

$A = 1500(1 + 0.01)^{24} = 1500(1.01)^{24}$

Answer:

$y = 1500(1.01)^{24}$