Answer:
[tex]A= 1000 \cdot (1.06)^t[/tex]
Step-by-step explanation:
Using the formula for the growth of investment:
[tex]A = P(1+r)^t[/tex] .....[1]
where,
A is the amount after t year
P is the Principal
r is the growth rate in decimal
As per the statement:
Scott invests $1000 at a bank that offers 6% compounded annually.
⇒P = $1000 and r = 6% = 0.06
substitute these in [1] we get;
[tex]A = 1000(1+0.06)^t[/tex]
⇒[tex]A= 1000 \cdot (1.06)^t[/tex]
Therefore, an equation to model the growth of the investment is,
[tex]A= 1000 \cdot (1.06)^t[/tex]
