Question

Consider this formula for finding the total amount of money generated by an account receiving compound interest: A=200(1+0.081)1⋅t
𝐴
=
200
(
1
+
0.08
1
)
1
⋅
𝑡
. When comparing to y=a(1+r)t
𝑦
=
𝑎
(
1
+
𝑟
)
𝑡
, the general formula for exponential growth, which part of the compound interest formula compares best with the variable r?(1 point)
Responses

1
1

200
200

1t
1 t

0.08
0.08
Graphing Calculator

Answer 1

0.08

Explanation: r is the interest rate. In A = 200(1 + 0.08/1)^{1·t}, the 0.08 is the r (8%).