Answer: C) [tex]B= 500(1.101)^{12t}[/tex]
Step-by-step explanation:
Given : The equation for this investment is B = 500(1.13)t, where B represents the balance and t is the number of years.
For monthly interest , Rate = [tex]\dfrac{r}{12}[/tex]
Time = 12 t [ 1 year = 12 months ]
As r = 0.13 , so rate = [tex]\dfrac{0.13}{12}\approx0.010[/tex]
Now, the equation will be :
[tex]B=500 (1+0.101)^{12t}[/tex]
[tex]\Rightarrow\ B= 500(1.101)^{12t}[/tex]
Correct option : C) [tex]B= 500(1.101)^{12t}[/tex]
