Hey guys, so I have a question that goes "An investment of $1500 is earning interest at 12%, compounded quarterly (every 3 months). Write an exponential function for the amount, , of the investment after t years.
Now the answer I came up with was
I came upon 1.12, because that would be a 12% increase on the previous amount, right? But when I went to check my answer, it seems that the correct answer is;
I have no idea why they are using 1.03, or where they even got 1.03? Can anyone shed some light on this? Thanks!