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:
10000(1+0.035/4)^n
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:
10000(1+0.035/4)^n
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
Steve
(b) It's a geometric sequence, since the common ratio is 1+.035/4
Now just use what you know about GPs
Now just use what you know about GPs