The equation A = 1300(1.02)7 is being used to calculate the amount of money in a savings account. What does 1.02 represent in this equation

Question

The equation A = 1300(1.02)7 is being used to calculate the amount of money in a savings account. What does 1.02 represent in this equation

Answer 1

A = 1300 (1.02)⁷

The 7 means 7 units of some time interval, such as years, months, days, etc. The 1.02 means that at the end of each time unit, the amount increased to 1.02 times the amount present at the start of the time unit.