Answer:
Initial deposit = $1000
Rate of interest per year = 3%
Step-by-step explanation:
The amount of money, in dollars, in an account after t years is given by :
[tex]A = 1000\cdot (1.03)^{t}[/tex]
where A is the amount and t is the time in years
To find the initial deposit and initial rate of interest convert the given equation into standard form.
[tex]\implies A = 1000\cdot (1.03)^{t}\\\\\implies A = 1000\cdot (1+\frac{3}{100})^{t}.......(1)[/tex]
[tex]\text{Now, }a_0\text{ is the initial deposit the interest rate is }a_1\%[/tex]
The standard form is :
[tex]A=a_0\cdot (1+\frac{a_1}{100})^t.....(2)[/tex]
So, Comparing the equations (1) and (2)
Initial deposit = $1000
Rate of interest per year = 3%
