Question

The amount of interest earned on an account can be represented using the recursive formula an=1.029an-1). If a1=255.00 , and n represents the number of months the money is invested, what is the balance at the end of each month for the first three months?
$255.00, $260.10, $265.30
$255.00, $260.10, $265.20
$255.00, $256.02, $257.04
$255.00, $250.00, $245.10

Answer 1

Compute month-to-month with factor 1.02:

- a1 = $255.00
- a2 = 255.00 × 1.02 = $260.10
- a3 = 260.10 × 1.02 = $265.302 → $265.30 (rounded to cents)

So the correct sequence is: $255.00, $260.10, $265.30.