ethanpaulwalls
Answered

The equation, 687.5 = 550(1 + 0.05t), represents the amount of money earned on a simple interest savings account. What does the value 550 represent?

The value 550 represents the initial balance in the account, which means the account started with $550.
The value 550 represents the final balance in the account, which means the account balance ended with $550.
The value 550 represents the final balance in the account, which means the account balance started with $550.
The value 550 represents the amount of interest earned, which means $550 was added to the initial balance.



Answer :

sqdancefan

Answer:

  (a)  The value 550 represents the initial balance in the account, which means the account started with $550.

Step-by-step explanation:

You want the meaning of 550 in the simple interest expression 687.5 = 550(1 + 0.05t).

Simple interest

The formula for computing the amount A of an account earning simple interest at annual rate r on its initial balance P for t years is ...

  A = P(1 +rt)

Comparing this formula to the given equation, we see ...

  687.5 = 550(1 +0.05t)

  • A = 687.5
  • P = 550 . . . . the initial balance
  • r = 0.05

The initial balance (starting amount) was 550.

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