The function to represent this situation is A = P( NR+1 ) and the amount in 2016 is $704.
What is simple interest?
"Simple interest is a method to calculate the amount of interest charged on a sum at a given rate and for a given period of time. In simple interest, the principal amount is always the same".
For the given situation,
Principle, P = $200
Rate of interest, R = 7% = 0.07
Number of years from 1980 to 2016, N = 36
The total amount in 2016 can be modeled as the equation,
[tex]A=P(NR+1)[/tex]
⇒ [tex]A = 200[(36)(0.07)+1][/tex]
⇒ [tex]A=704[/tex]
Hence we can conclude that the function to represent this situation is A = P( NR+1 ) and the amount in 2016 is $704.
Learn more about simple interests here
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