To represent the situation where Jasper has $154.65 to put into a savings account with a 2.3% interest rate compounded weekly, we need to use the compound interest formula:
\[ A = P \left(1 + \frac{r}{n}\right)^{nt} \]
Where:
- \( A \) is the amount of money accumulated after n years, including interest.
- \( P \) is the principal amount (the initial amount of money).
- \( r \) is the annual interest rate (decimal).
- \( n \) is the number of times that interest is compounded per year.
- \( t \) is the time the money is invested or borrowed for, in years.
In this case:
- \( P = 154.65 \)
- \( r = 0.023 \) (since 2.3% as a decimal is 0.023)
- Since the interest is compounded weekly, \( n = 52 \) (there are 52 weeks in a year).
Now, substituting these values into the compound interest formula, we have:
\[ A = 154.65 \left(1 + \frac{0.023}{52}\right)^{52t} \]
Among the provided options, this matches:
A = 154.65 ( 1 + .023/52)^52t
Thus, this is the correct equation representing the situation.
4 answers