Question 5 • CMS 2026-2027 NC Math 1 CREDIT RECOVERY
Josiah invests 360 dollars into an account that accrues 3 percent interest annually. Assuming no deposits or withdrawals are made, which equation represents the amount of money in Josiah’s account, y , after x years?
Answer
A
y is equal to 360 times 1 point 3 to the x th power
B
y is equal to 360 times 0 point 0 3 to the x th power
C
y is equal to 360 times 1 point 0 3 to the x th power
D
y is equal to 360 times 0 point 3 to the x th power
Explanation
With annual compound interest, the amount after x years is the initial balance multiplied by (1 + the interest rate)^x. Here, the rate is 3% = 0.03, so y = 360(1.03)^x. Choice B, 360 times 1.03 to the xth power, represents the account balance.
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