Question

Suppose you have an investment fund that began with $200 and is increasing by

5% each month. Write a sequence that represents how much the fund is worth each
month for the first six months (starting at month 0) and then write an expression for
the value after n months.

Answer 1

• see below for the sequence of values
• a(n) = 200·1.05^n

Explanation:

Each month the value is multiplied by 1 +5% = 1.05. After n months, the value (a) will be 1.05^n times the original value, so will be ...

a(n) = 200·1.05^n

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An exponent is used to signify repeated multiplication.