SOLUTION: You have $175.00 that you received as a birthday present you plan on putting it in the bank for 5 years where you will earn 3% interest compounded annually. Figure out how much mon
Algebra ->
Customizable Word Problem Solvers
-> Finance
-> SOLUTION: You have $175.00 that you received as a birthday present you plan on putting it in the bank for 5 years where you will earn 3% interest compounded annually. Figure out how much mon
Log On
Question 1032163: You have $175.00 that you received as a birthday present you plan on putting it in the bank for 5 years where you will earn 3% interest compounded annually. Figure out how much money you will have after each year. Decide if these earnings show a linear or non linear sequence and then explain how you came to that conclusion? Answer by jorel555(1290) (Show Source):
You can put this solution on YOUR website! You put $175 into a bank at 3% interest; you have the principal (1)x.03 interest at the end of the year. So:
175x1.03=180.25 at the end of the year.
Calculating for each successive year, you have:
180.25x1.03=185.6575
185.6575x1.03=191.227
191.227x1.03=196.96
196.96x1.03=$202.87 at the end of the fifth year.
These amounts cannot be expressed by a single line, because the interest compounds after every year--meaning you earn a little more than you did before for each successive year!!!!!!!!!!
(