SOLUTION: Connor opens a new savings account and deposits 100 on the first day of the month. Each month after that he will increase his monthly contribution by 1%. How much is in the account

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Question 1208886: Connor opens a new savings account and deposits 100 on the first day of the month. Each month after that he will increase his monthly contribution by 1%. How much is in the account to the nearest dollar, right after Connor makes his last deposit on the first day of the sixth year (61 month)
Found 2 solutions by ikleyn, math_tutor2020:
Answer by ikleyn(52776)   (Show Source): You can put this solution on YOUR website!
.
Connor opens a new savings account and deposits 100 on the first day of the month.
Each month after that he will increase his monthly contribution by 1%.
How much is in the account to the nearest dollar, right after Connor makes his last
deposit on the first day of the sixth year (61 month)
~~~~~~~~~~~~~~~~~~~~~~~~~

1st month deposit is  100.

2nd month deposit is  100*1.01.

3rd month deposit is 100*1.01^2.

. . . . 

61th month deposit is 100*1.01^60.


The total is the sum of the geometric progression with the first term of 100 and the common ratio of 1.01.
Use the standard formula for such sum


     = 100*(1 + 1.01 + 1.01^2 + . . . + 1.01^60) =  = 8348.636655...


Since I don't know how this monetary system works in that country, I do not round this number.
You can do it on your own after consultations with your professor.

Solved.


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I just fixed my typo from 0.01^2 to 1.01^2.

Do not worry about it.



Answer by math_tutor2020(3816)   (Show Source): You can put this solution on YOUR website!

Tutor ikleyn should change 0.01^2 to 1.01^2
The result 8348.636655... represents how much Connor deposits in total.
If rounding to the nearest penny, then it would be $8348.64

This would not represent how much is in the savings account because the balance will accrue interest.
Unfortunately the interest rate is not stated so there's no way to find how much is in the account.


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