Question

A high-interest savings account pays 5.5% interest compounded annually. If $300 is deposited initially and again atthe first of each year, which summation represents the money in the account 10 years after the initial deposit?10Ο Σ300(0.055) 2-1n=110Ο Σ305.5(1.055) 2-1n=110316.5(0.055)-1カ%3D110Σ316.5(1.055) 2-1n=1Save and ExitNextSubmitMark this and return

Answer 1

For this problem we use the formula for compund interest and substitute the 5.5% of interest annually and the initial deposit of $300:

`\Sigma^(n=10)_(n=1)300(0.055)^(n-1)_{}`

Answer: first option.