SOLUTION: Suppose you began making annual investments several years ago in a mutual fund in order to save for retirement. You initially invested $1000 and increased the amount by 3% per year
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Question 855005: Suppose you began making annual investments several years ago in a mutual fund in order to save for retirement. You initially invested $1000 and increased the amount by 3% per year as your salary rose. Shares of the fund initially cost $50 each and have been increasing in price by 12% each year. Write a rule for the amount invested in year (n) then a rule for the share price in year n at the time you invested. Answer by richwmiller(17219) (Show Source):
You can put this solution on YOUR website! Tn = T1 * r^(n - 1)
invested
Tn = 1000 * 1.03^(n - 1)
Tn = 970.874 *1.03^n
shares
Tn = 50 * 1.12^(n - 1)
Tn = 44.6429* 1.12^n
