josiah invests $360 into an account that accr...
josiah invests $360 into an account that accrues 3% interest annually. assuming no deposits or withdrawals are made, which equation represents the amount of money in josiahs account, y, after x years?\n y = 360(1.3)^x\n y = 360(0.3)^x\n y = 360(0.03)^x\n y = 360(1.03)^x
Answer
# Explanation:
## Step1: Recall compound - interest formula
The compound - interest formula for annual compounding is $y = P(1 + r)^x$, where $P$ is the principal amount, $r$ is the annual interest rate (as a decimal), and $x$ is the number of years.
## Step2: Identify values of $P$ and $r$
Here, $P=\$360$ and the interest rate $r = 3\%=0.03$.
## Step3: Substitute values into formula
Substitute $P = 360$ and $r = 0.03$ into $y = P(1 + r)^x$. We get $y=360(1 + 0.03)^x=360(1.03)^x$.
# Answer:
$y = 360(1.03)^x$ (the fourth option)