SOLUTION: Don invests $1,300 at a bank that offers a 7% annual interest rate compounded monthly. If t represents time in years, which expression represents the approximate amount of money in

Question 1028334: Don invests $1,300 at a bank that offers a 7% annual interest rate compounded monthly. If t represents time in years, which expression represents the approximate amount of money in the account?
Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
this all depends on where you start from.

you are given the principal is 1300
you are given the annual interest rate percent is equal to 7%.
you are given that the number of years is equal to t.
you are given that the interest rate is compounded monthly.

assuming the formula is f = p * (1 + r)^n, where:

f is the future value,
p is the present value, or the principal, however you want to call it,
r is the annual interest rate,
t is the number of years,

then the formula becomes:

f = 1300 * (1 + .07/12) ^ (12 * t)

the interest rate is 7% per year.
this is divided by 100 to get the interest rate of .07 per year.
this is divided by 12 to get the interest rate of .07/12 per month.

the number of years is t.
this is multiplied by 12 to get the number of months is 12 * t.

the general formula is:

f = p * (1 + r/c) ^ (c * t)

f is the future value
p is the present value
r is the annual interest rate (not the percent, but the percent / 100).
t is the number of years.
c is the number of compounding periods per year.

i'm not sure what your selections are, but if none of them match what i showed you, or you can't translate what i showed you to any of them, then send me what they are, along with the original question, and i'll try to figure out which would be the best selection for you.

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