Q:

The amount of money in a savings account after t years is represented by the function f(t)=3600(1.035)t .What does the value 3600 represent in this situation?A)The amount of money in the savings account is 3600 times the amount of the previous year.B)The amount of money in the savings account decreases by $3600 each year.C)The amount of money in the savings account increases by $3600 each year.D)The initial amount in the account is $3600.

Accepted Solution

A:
Answer:  The initial amount in the account = $3600Step-by-step explanation:Since we have given that The amount of money in a savings account after t years is represented by the function [tex]f(t)=3600(1.035)^t[/tex]As we know the formula "Compound Interest" :[tex]Amount=P(1+\frac{r}{100})^t\\\\Here,\\\\\text{ P denotes principal}\\\\\text{ R denotes Rate of interest}\\\\\text{ T denotes time}[/tex]So, According to our question,Rate of interest = 0.35 = 35%So, equate the both the equations , we get thatHence, The initial amount in the account = $3600