Gerardo has just invested in a bond worth $470 that is expected to increase in value by 6% per year. Write the equation used to determine the value of his bond after t years.

Step-by-step explanation:

We would apply the formula for determining compound interest which is expressed as

A = P (1+r/n) ^nt

Where

A = total amount in the account at the end of t years

r represents the interest rate.

n represents the periodic interval at which it was compounded.

P represents the principal or initial amount deposited

From the information given,

P = $470

r = 6% = 6/100 = 0.06

n = 1 because it was compounded once in a year.

Therefore, the equation used to determine the value of his bond after t years is

A = 470 (1 + 0.06/1) ^1 * t

A = 470 (1.06) ^t