Subjects algebra

Compound Interest 1085D9

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1. **State the problem:** Veronica has a bank account with an initial deposit of 200 and an annual interest rate of $m\%$ compounded annually. The amount after $t$ years is given by the expression $200(x)^t$. We need to find $x$ in terms of $m$. 2. **Recall the formula for compound interest:** The amount $A$ after $t$ years with principal $P$ and annual interest rate $r$ (as a decimal) compounded annually is: $$A = P(1 + r)^t$$ 3. **Identify the variables:** - Principal $P = 200$ - Interest rate $r = \frac{m}{100} = 0.01m$ - Amount after $t$ years $A = 200(x)^t$ 4. **Match the given expression to the formula:** Since $A = 200(x)^t$ and $A = 200(1 + r)^t$, it follows that: $$x = 1 + r = 1 + 0.01m$$ 5. **Conclusion:** The value of $x$ in terms of $m$ is: $$x = 1 + 0.01m$$ This corresponds to option A.