An investment of $500 is compounded monthly at a rate of 3%. What is the equation that models this situation? Graph the equation.
1. Read the problem statement and then reread the scenario, identifying the known quantities. 2. Substitute the known quantities into the general form of the compound rnt interest formula, for which P is the initial value, r is the interest rate, n is the number of times the investment is compounded in a year, and t is the number of years the investment is left in the account to grow. 3. Graph the equation.