elementary math

Question

A sum of money is invested for a certain length of time in an account earning interest at a certain rate. Explain how the balance in the account at the end of that time can be considered a function of three variables. Clearly identify the variables and derive a formula for the balance in terms of these three variables.

Answer 1

Balance = Principal* (1+rate)^time or P ( 1+r)^t

where Principal P is the original amount borrowed, rate R is the interest rate, and t is the

# of times the interest accumulates