Question
Suppose you deposit $10,000 into an account earning 3.5% interest
compounded quarterly. After n quarters the balance in the account is given
by the formula:
a) Each quarter can be viewed as a term of a sequence. List the first 5 terms.
b) Identify the type of sequence this is. Explain.
c) Find the balance in the account after 30 quarters.
compounded quarterly. After n quarters the balance in the account is given
by the formula:
a) Each quarter can be viewed as a term of a sequence. List the first 5 terms.
b) Identify the type of sequence this is. Explain.
c) Find the balance in the account after 30 quarters.
Answers
Scott
b = 10000 [1 + (.035/4)]^n
a) calculate
b) geometric
... the ratio (r) of any two consecutive terms is a constant
... r = 1 + .035/4
c) calculate
a) calculate
b) geometric
... the ratio (r) of any two consecutive terms is a constant
... r = 1 + .035/4
c) calculate