101k views
0 votes
The amount of money deposited into an account in a given year is multiplied by a growth factor of x = 1 + r. $800 is

deposited at the start of the first year; an additional $300 is deposited at the start of the next year, and $625 at the start of
the following year. Write an expression that represents the amount of money in the account at the end of the three years.

User Freakyuser
by
9.0k points

1 Answer

6 votes

Answer:

800(1 + r)³ + 300(1 + r)² + 625(1 + r)

Explanation:

At the beginning of the first year $800 is deposited.

At the end of the first year the amount of money in account = $800 × growth factor = 800(1 + r)

At the beginning of the second year, $300 is deposited, the money in account = 800(1 + r) + 300

At the end of the second year the amount of money in account is multiplied by growth factor. = [800(1 + r) + 300] × 1 + r = 800(1 + r)² + 300(1 + r)

At the beginning of the third year, $625 is deposited, the money in account = 800(1 + r)² + 300(1 + r) + 625

At the end of third year the money = [800(1 + r)² + 300(1 + r) + 625] × 1 + r = 800(1 + r)³ + 300(1 + r)² + 625(1 + r)

User Fanchi
by
7.9k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories