Consider this formula for finding the total amount of money generated by an account receiving compound interest: A=200(1+0.081)1⋅t

Question

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

1t
1 t

200
200

0.08
0.08

1

Answer 1

In the formula for exponential growth \( y = a(1 + r)^t \), the variable \( r \) represents the rate of growth per time period.

In the given compound interest formula \( A = 200(1 + 0.081)^{1 \cdot t} \), the part that best compares with \( r \) is \( 0.081 \).

Thus, the correct response is:

0.08