To find the initial value of the bank account, we need to determine the amount present before any years have passed. From the table:
- After 1 year, the amount is $1,080.
- After 2 years, the amount is $1,160.
- After 3 years, the amount is $1,240.
As we can see, each year the account grows.
Let's calculate the growth per year:
- From year 1 to year 2: $1,160 - $1,080 = $80
- From year 2 to year 3: $1,240 - $1,160 = $80
This suggests that the account grows by $80 each year.
If we want to find out the initial value (amount at year 0), we can subtract the gain from the first year:
Initial Value = Amount after 1 year - Amount gained in 1 year Initial Value = $1,080 - $80 = $1,000
Thus, the initial value of the bank account is $1,000.