DEADSHADOW14
contestada

ANSWER FOR 40 POINTS!!!

A high-interest savings account pays 5.5% interest compounded annually. If $300 is deposited initially and again at the first of each year, which summation represents the money in the account 10 years after the initial deposit?

ANSWER FOR 40 POINTS A highinterest savings account pays 55 interest compounded annually If 300 is deposited initially and again at the first of each year which class=
ANSWER FOR 40 POINTS A highinterest savings account pays 55 interest compounded annually If 300 is deposited initially and again at the first of each year which class=
ANSWER FOR 40 POINTS A highinterest savings account pays 55 interest compounded annually If 300 is deposited initially and again at the first of each year which class=
ANSWER FOR 40 POINTS A highinterest savings account pays 55 interest compounded annually If 300 is deposited initially and again at the first of each year which class=

Respuesta :

musiclover10045

The compounded interest would be written as 1.055 in the equation, because you need to multiply the total by itself, plus the 0.55 interest rate.

The total after the first year would be 300 x 1.055 = 316.5

So the equation would be the summation shown in the first picture: 316.5(1.055)^n-1

The summation represents the money in the account 10 years after the initial deposit is   [tex]$\sum_{n=1}^{10} 316.5(1.055)^{n-1}$[/tex].

Compound interest

Let, Annually interest rate R = 5.5 %

Principal amount P = [tex]\$ 300$[/tex]

Deposit time n = 10.

The compound interest formula,

[tex]$A=P\left(1+\frac{R}{100}\right)^{n}$[/tex]

Substitute the value in above expression to estimate the compound interest 1 year.

[tex]${data-answer}amp;A=300\left(1+\frac{5.5}{100}\right)^{1} \\[/tex]

[tex]${data-answer}amp;A=300 \times(1.055)[/tex]

Similarly, to find the compound interest for 2 year.

A = 316.5 + 316.5(1.055)

From the given question this process repeat for 10 year.

[tex]$A=316.5+316.5(1.055)+316.5(1.055)^{2} \ldots$[/tex]

The above expression can be written in form of summation.

[tex]$\sum_{n=1}^{10} 316.5(1.055)^{n-1}$[/tex]

The summation represents the money in the account 10 years after the initial deposit is   [tex]$\sum_{n=1}^{10} 316.5(1.055)^{n-1}$[/tex].

To learn more about compound interest

https://brainly.com/question/3280219

#SPJ2

Otras preguntas