Question

A principal of $835 is invested in an account at 4 percent per quarter simple interest. Which of the following sequence(s) describes the dollar amount of principal in the account at quarterly intervals?
A. 33.40, 66.80, 100.20, 133.60, 167.00, ...
B. 835.00, 868.40, 901.80, 935.20, 968.60, ...
C. 835.00, 901.80, 968.60, 1,035.40, 1,102.20, ...
D. 835.00, 851.70, 868.73, 886.11, 903.83, ...
E. 66.80, 133.60, 200.40, 267.20, 334.00, ..

Answer 1

Your principle amount is the amount of money you invest right at the start. ($835). This rules out A and E straight away (because the question is asking for the principle accumulation).

Now in the 1st year, 104% of $835 = $868.40
2nd year, 104% of $868.40 = $903.14
3rd year, 104% of $903.14 = .....
4th year....
etc.

You're just adding on 4% of the last amount every time interval.

Answer 2

so would it be more than one sequence or just B?

Answer 3

Just B.
C skips the first year, and D's values are too low

Answer 4

ok thank you