To find the amount of interest Kaira will earn at the end of the 3-year term, we need to subtract the total value of her $600 deposits from the total value of the investment after 3 years.
The equation C(x) represents the value of the investment after 3 years:
C(x) = 600x^3 + 600x^2 + 600x
To calculate the value of the investment after 3 years, we need to substitute x = 1 + r into the equation:
C(x) = 600(1+r)^3 + 600(1+r)^2 + 600(1+r)
Let's simplify this equation:
C(x) = 600(x^3 + x^2 + x)
Next, let's calculate the value of the investment after 3 years:
C(x) = 600(1.0475^3 + 1.0475^2 + 1.0475) (rounded to 4 decimal places)
C(x) = 600(1.1452 + 1.0976 + 1.0475)
C(x) = 600(3.2903)
C(x) = 1974.18
The total value of Kaira's deposits after 3 years is 3 * 600 = 1800
So, the amount of interest earned is 1974.18 - 1800 = 174.18
Therefore, Kaira will earn $174.18 of interest at the end of the 3-year term.
For the past 3 years, Kaira has deposited $600 at the beginning of each year into an investment account with an interest rate of 4.75%. Use x=1+r, where r is the interest rate, and the equation C(x)=600x3+600x2+600x. The equation represents the relationship between C(x), the value of the investment after 3 years. Given that the amount of interest earned is the difference between the total value of the investment after 3 years and the sum of her $600 depositsl, find the amount of interest that Kaira will earn at the end of the 3-year term. Round the answer to two decimal places
The amount of interest that Kaira will earn at the end of the 3-year term is $___
1 answer