Question

Which of the following equations could you use to find the nth term of a simple interest sequence?

A. an a = a + nd
B. P. = P. (1+1)+1
C. a, = 2,7-1
D. Pa = Px + (n - 1)ip,
E. Y = X + n - 1) VÀ​

Answer 1

The correct equation to find the nth term of a simple interest sequence is option D, which represents the total future amount with simple interest applied over multiple periods.

Step-by-step explanation:

The question asks which equation can be used to find the nth term of a simple interest sequence. The correct formula to calculate the total future amount with simple interest is Pn = P + (n - 1)iP, where:

• P is the initial principal balance,
• i is the rate of interest per period,
• n is the number of periods,

Therefore, looking at the given options, the correct equation corresponding to this formula would be option D, which appropriately represents the calculation of simple interest over multiple periods.

For example, if you deposit $100 at a simple interest rate of 5% for one year, the interest earned would be calculated as follows: $100 × 0.05 × 1 = $5. To find the total amount after one year, you would add the interest to the principal: $100 + $5 = $105. This demonstrates the application of simple interest formula to calculate the future value of an investment.