Question

CORRECT ANSWERS ONLY 50+ POINTS!!!!!!

At the beginning of year 1, Paolo invests $500 at an annual compound interest rate of 4%. He makes no deposits to or withdrawals from the account. Which explicit formula can be used to find the account\’s balance at the beginning of year 5? What is the balance?
A. A(n) = 500 • (1 + 0.04)n; $608.33

B. A(n) = 500 + (n – 1)(0.04 • 500); $580.00

C. A(n) = 500 • (1 + 0.04)(n – 1); $584.93

D. A(n) = 500 + (0.004 • 500)(n – 1); $516.00

Answer 1

Answer:

Out of all the choices given A. seems to fit best.

The initial value is 500 so the beginning should be A(n) = 500

The rate of increase is 4% so you would put that into decimal form of 0.04

Then you plug in 0.04 into (n - 1) and since we know that it is increasing you would put (1 + 0.04)

And the question asked to find the account's balance at the beginning of year 5 so plug 5 into n in the equation

A(n) = 500(1 + 1.04)^5 = 608.33

Hope this helps!

Answer 2

Answer:

A(n)=500 x (1+0.04)^(n-1); $584.93

Step-by-step explanation:

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