SOLUTION: If a person earns an annual interest rate of 7% on an investment of $1500.00. Write the function that shows how much money the investor has at t,in years. I think the answer is P(

Question 125332: If a person earns an annual interest rate of 7% on an investment of $1500.00. Write the function that shows how much money the investor has at t,in years.
I think the answer is P(t)=1500(1.07)^t. Can someone please tell me if I am correct ?
Answer by Earlsdon(6294) (Show Source): You can put this solution on YOUR website!
You are correct!
Year 1 (t=1), he/she would have $1500(1.07)^1 That's $1500 plus 7% of $1500.
Year 2 (t=2,) he/she would have ($1500(1.07)1.07 = $1500(1.07)^2
Year 3 (t=3), he/she would have (($1500(1.07))1.07)1.07) = ($1500(1.07)^3
and so on...
So in t years, he/she would have
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