Q:

Mario invests 1,500 in a savings account that earns 2% interest a year. He also plans to set aside $50 cash a month. A:2100(1.02)x B:1500(1.02)x+600x C:500(1.02)x-600x D:2100 PLS HELP TIMED!!!

Accepted Solution

A:
Answer:1500(1.02)^x  +   600x is how much he has in savings at the end of x years where it be in the bank or elsewhere Step-by-step explanation:x is in yearsLet's just think about the investment of 1500 in an account earning 2% per year.Before the years even start, you are at 1500 ( present value).The next year (year 1), it would be 1500*.02+1500=(1500)(1.02).The next year (year 2), it would be 1500(1.02)(.02)+1500(1.02)=1500(1.02)(1.02).We keep multiplying factors of (1.02) each time.So for year x, you would have saved 1500(1.02)^x.Now we are saving 50 cash per month. Per year this would be 12(50) since there are 12 months in a year.  12(50)=600.  So the first year you would have 600.The second year you would have 600(2) or 1200.The third year you would have 600(3) or 1800.Let's put this together:1500(1.02)^x  +   600x