B) A savings account, S, has an initial value of $50. The account grows at a 2% interest rate compounded n times per year, t, according to the function below. nt .02 S(t) = 50 1+ n
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
Speed, Time, and Distance
Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 miles away.
Profit and Loss
The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
Units and Measurements
Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.
As the value of n increases, the amount of interest per year........(increase/decrease) ............ because ................... ?
Please write only a statement. Thank you.
![### Compound Interest and Savings Accounts
#### Example Problem:
**Given:**
A savings account, \( S \), has an initial value of $50. The account grows at a 2% interest rate compounded \( n \) times per year, \( t \), according to the function below.
\[ S(t) = 50 \left(1 + \frac{0.02}{n}\right)^{nt} \]
**Explanation:**
The formula for the compound interest of a savings account is given, where:
- \( S(t) \) is the value of the savings account after \( t \) years.
- The initial principal (the initial amount of money) is $50.
- The annual interest rate is 2% (or 0.02 as a decimal).
- \( n \) represents the number of times the interest is compounded per year.
- \( t \) represents the number of years the money is invested or borrowed.
The function describes how the value of the savings account grows over time with compound interest. The interest is compounded \( n \) times each year, and this formula is fundamental for understanding how compound interest impacts growth over time.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F488b60ff-9f36-4743-8e7c-aaf54d5d0a5e%2F339cd30f-2e3b-4c52-9ecd-f411551e133a%2F4uamu5_processed.png&w=3840&q=75)
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