Answer:
[tex]f(t) = 1450(1.025)^{t}[/tex]
Step-by-step explanation:
Given
[tex]P =1450[/tex] -- principal
[tex]r = 2.5\%[/tex] --- rate
[tex]n = 1[/tex] --- compounded once a year
Required
Determine the function for compound interest
Compound interest f(t) is calculated as:
[tex]f(t) =P(1 + r/n)^{nt[/tex]
So, we have:
[tex]f(t) = 1450(1 + 2.5\%/1)^{1 * t}[/tex]
[tex]f(t) = 1450(1 + 2.5\%)^{t}[/tex]
[tex]f(t) = 1450(1 + 0.025)^{t}[/tex]
[tex]f(t) = 1450(1.025)^{t}[/tex]
