D) the amount increases by 2 % each year
The function A(t)=500(1.02)^t represents compound interest, where the amount increases by 2% each year.
Pam deposited $500 into a savings account that pays interest each year. She uses the function A(t)=500(1.02) ^t to model the amount in her savings account, in dollars, where t is the number of years since her initial deposit. According to the model, how does this amount change over time?
A) the amount increases by $102 each year
B) the amount increases by 1.02$ each year
C) the amount increases by 102% each year
D) the amount increases by 2 % each year
E) the amount increases by 1.02$ each year
F) the amount increases by 2 $ each year
1 answer
1 answer