Answer: y = 500 * ( 1 + 0.75%) ^ (t * 12)
Step-by-step explanation:
Formula for calculating the amount of money in an account as a result of compound interest is:
Balance = Amount * ( 1 + rate) ^ no. of periods
This interest is compounded monthly so has to be converted to a monthly rate:
= 9% / 12
= 0.75%
t is in years so has to be converted as well to months:
= t * 12 months
Function is therefore:
y = 500 * ( 1 + 0.75%) ^ (t * 12)
