SOLUTION: For each of the past 10 years Bill's retirement account has increased in value by 8% over the preceding year. If this pattern of increase continues for the next 3 years what will

Question 629341: For each of the past 10 years Bill's retirement account has increased in value by 8% over the preceding year. If this pattern of increase continues for the next 3 years what will be the total percent increase in the value of Bill's retirement account over the 3 years?
Thanks so much~ This is a Praxis II General Content Knowledge question!
Answer by 55305(86) (Show Source): You can put this solution on YOUR website!
Let's assume that Bill's retirement account had $1000 in it right now. So in a year, his account will have 1.08*1000. The next year, he will have 1.08*1.08*1000, and in the next year there will be 1.08*1.08*1.08*1000, or $1259.712. The percent of change formula is something like this: (c-o)/o, with c being the current value, and o being the old value. So we plug in the numbers: ($1259.712-$1000)/1000= $259.712/1000= 0.259712= 25.9712%
So the percent increase is 25.9712%.
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