A person deposited $500 in a savings account that pays 5% annual interest that is?


1 Answers

Lana Lee Heckman Profile
This is a geometric sequence.  We know the following
n = the number of terns  n = 10 years
r = the common ration  r = 1.05
a1 = the first term  a1 = $525 ($500 x 1.05)
Now that this is settled we need to find the total for each year up to the 10 years.  Look at page 226 for the formula Bluman (2005).
An = a1(rn-1)
a10 = $525(1.059)
a10 = $525(1.551328…)  Do not round off the number here.  Round of the sum total below:
A10 = $814.45
Our balance at the end of the 10 years is $814.45.

Beyada,    (2010) Additional guidance. Iowa: Ashford University.
Bluman, A. G. (2005) Mathematics in our world. (1st ed.). Ashford University Custom Addition.  New York: McGraw-Hill
thanked the writer.
Lana Lee Heckman
Lana Lee Heckman commented
This question comes right out of a book called Mathematics In Our World and is a text book used at Ashford University online MAT 126. The formula is the same formula used by Instructor Bedaya and has been referenced as such. I have seen many questions asked that are from Ashford University. Thought I would let you know.

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