2021 Algebra 1 Summer School Question 8 of 48
Amy deposits $600 in her bank account. It offers a 5% annual interest rate, compounded monthly. Her balance B after t years is given by the equation below.
B = 600(1 + 0.05) 14
Which of the following best describes the equation?
The product of the amount deposited and one plus the factor of increase raised to a period of 12 months.
The product of the amount deposited and one plus the factor of increase raised to a period of 12 years.
O The product of the amount deposited and one plus the factor of increase raised to the number of compounding periods.
The product of the amount deposited and one plus the factor of increase raised to a period of t years.