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.
References
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
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.
References
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