IDNLearn.com is designed to help you find the answers you need quickly and easily. Our platform is designed to provide accurate and comprehensive answers to any questions you may have.
Determining how much money will be in the account of Maite at the end of each year, we use an exponential growth factor, since this is a geometric sequence.
1. This situation represents a geometric sequence.
A geometric sequence increases by a common exponential growth factor.
2. The common exponential factor is 1.03 (which gives a growth rate of 3% annually). See how this factor is determined below.
3. At the end of the seventh year, Maite will have $1,194.05 in the account. See the calculation below.
Data and Calculations:
Year Amount
1 $1,000.00
2 $1,030.00
3 $1,060.90
4 $1,092.73
5 $1,125.51
6 $1,159.27 ($1,125.51 * 1.03)
7 $1,194.05 ($1,159.27 * 1.03)
The common exponential factor = 1.03 (1 + 0.03)
To obtain the common exponential factor, subtract Year 2 account balance from Year 1 account balance. Divide the result by Year 1 account balance. This operation can also be carried out with Year 2 and Year 3 balances or Year 4 and Year 5 balances.
To determine how much money will be in the account of Maite at the end of Year 6, using Year 5 as a base = (Year 5 account balance * Exponential Factor)
= $1,159.27 ($1,125.51 * 1.03)
To determine Year 7 account balance, we use Year 6 above as the base
= $1.194.05 ($1,159.27 * 1.03)
Learn more about geometric sequence and exponential growth here: https://brainly.com/question/7154553
Answer:
This situation represents a geometric sequence.
The common ratio is 1.03
At the end of the seventh year, Maite will have $1,194.06 in the account.
Step-by-step explanation:
Plato