Which scenario can be modeled using the formula A=P×(1+(r)/(n))^nt ?
Answer
A
A 2 dollars comma 500 deposit that earns a flat amount of interest each year based on the amount of the initial deposit.
B
A 1 dollars comma 500 deposited into a savings account where interest is calculated on the original deposit amount once a year for 3 years.
C
A savings account with an original balance of 2 dollars comma 000, where simple interest is added once annually for 5 years.
D
A 1 dollars comma 000 investment where the interest earned is calculated on the total balance, including previously earned interest, each quarter for 4 years.