Question

In money in a savings account earned 8.5% intrest per annum, how much interest would be earned on $200.00 over two years?

Answer 1

$1305.91

Explanation:

To solve this, we can use the geometric sequence formula

`\alpha _n=a_1*r^n^-^1`

If we plug in our values we get
`\alpha _n=200*1.085^2^3`

Thus, leaving us with 1305.91

Hope this helps