Question

Imagine you have invested $500 in an account that pays 5% simple interest per year. Can you find an arithmetic sequence to look for the amount of money in the account after 20 years?

Answer 1

since it is simple interest, the annual increase in the account would be .05(500) or $25

so in an A.S.
a = 500
d = 25
n = 20

term(20) = a+19d = 500 + 19(25) = 975