Answer:
$1350.68 to nearest cent.
Explanation:
At the beginning $500 is deposited and this accumulates interest for 3 years At the end of first year it increases to 500( 1 + r) dollars
Then at the end of the 2 years its value is
500(1+ r)(1 + r)(
and at the end of 3 years value =
500(1 + r)(1 + r)(1 + r)
= 500(1 + r)^3 dollars
and as 1 + r = x we have:
500x^3 dollars
In the same way 200 for 2 years = 200x^2
and 600 for 1 year = 600x dollars.
Total = 500x^3 + 200x^2 + 600x.
b.
So, if the interest r = 2 % (= 0.02)
and x = 1.02
Total value after 3 years
= 500(1.02)^3 + 200(1.02)^2 + 600(1.02)
= 530.604 + 208.08 + 612
= $1350.684