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 deposits, find the amount of interest that Kaira will earn at the end of the 3-year term. Round the answer to two decimal places.(1 point) The amount of interest that Kaira will earn at the end of the 3-year term is $.

1 answer

To find the amount of interest Kaira will earn at the end of the 3-year term, we first need to calculate the total value of the investment after 3 years using the provided formula \( C(x) = 600x^3 + 600x^2 + 600x \).

Here, \( x \) is defined as \( 1 + r \), where \( r \) is the interest rate. Given that the interest rate \( r \) is 4.75%, we can express \( x \) as:

\[ x = 1 + 0.0475 = 1.0475 \]

Now we need to evaluate \( C(x) \):

\[ C(1.0475) = 600(1.0475^3) + 600(1.0475^2) + 600(1.0475) \]

Calculating each term:

  1. Calculate \( 1.0475^3 \): \[ 1.0475^3 \approx 1.148882 \]

  2. Calculate \( 1.0475^2 \): \[ 1.0475^2 \approx 1.097616 \]

  3. Calculate \( 1.0475 \): \[ 1.0475 \approx 1.0475 \]

Now put these values into the equation:

\[ C(1.0475) \approx 600(1.148882) + 600(1.097616) + 600(1.0475) \]

Calculating each term:

  1. \( 600 \times 1.148882 \approx 689.3292 \)
  2. \( 600 \times 1.097616 \approx 658.5696 \)
  3. \( 600 \times 1.0475 \approx 628.5 \)

Now sum these amounts:

\[ C(1.0475) \approx 689.3292 + 658.5696 + 628.5 \approx 1976.3988 \]

So the total value of the investment at the end of 3 years is approximately \( 1976.40 \).

Next, calculate the total deposits:

Total deposits = 3 years * $600 = $1800.

Now, we find the interest earned:

\[ \text{Interest} = C(1.0475) - \text{Total deposits} = 1976.40 - 1800 = 176.40 \]

Thus, rounding to two decimal places, the amount of interest that Kaira will earn at the end of the 3-year term is

\[ \boxed{176.40} \]