Question

Type the correct answer in the box. Use numerals instead of words.

Find the sum of a finite geometric series.

At the beginning of every year, Molly deposits $200 in a savings account that offers an interest rate of 20%, compounded annually. The total

amount that Molly will have in her account at the end of 3 years is $

Answer 1

$345.60

Explanation:

From the above question,

P = Principal = $200

R = Interest rate = 20%

T = Time in years = 3 years

n = Number of times interest is compounded = Annually = 1

First, convert R as a percent to r as a decimal

r = R/100

r = 20/100

r = 0.2 rate per year,

Then solve the equation for A

The formula =

A = P(1 + r/n)^nt

A = 200.00(1 + 0.2/1)^(1×3)

A = 200.00(1 + 0.2)^(3)

A = $345.60

Therefore, the total amount that Molly will have in her account at the end of 3 years is $345.60