Using the sequence below, write out a formula for the balance in the account n years after December 1996:

Question

Years Balance

1996 = $20,000
1997 = $22,000
1998 = $24,200
1999 = $26,620
2000 = $29,282

r = 1.1
and 2006 = 51,874.8492

Thanks

Answer 1

Let B(n) equal tha balance after n years.
Since the balance increases 10% per year,

B(n) = 20,000*(1.1)^n

Check: At the end of 4 years B(4) is
20,000*1.1^4 = 29,282

At the end of 10 years, the balance is B(10) = 51,874.85