2. Write a sequence that represents the amount of money that will accumulate if $10 000 is invested at 8% per year, compounded quarterly. Determine tn. What does n represent?

Question

2.	Write a sequence that represents the amount of money that will accumulate if $10 000 is invested at 8% per year, compounded quarterly. Determine tn. What does n represent?

anonymous · Answer

I don't really get this equation, is this the formula : |dw:1341313747330:dw|

ganeshie8 · Answer

yup.. we can use that formula to get the sequance representing quarterly balance.

t1 is the first term, 
r is the periodic interest rate

in this problem,
t1 = 10,000
r = .08/4

anonymous · Answer

thank you, now it makes sense, and all i have to do is explain what n is or should i answer the whole equation?

ganeshie8 · Answer

wait... your formula gives only the interest accumulated.
we should use a different but similar formula  to get the sequence for balance:

$$t_n = t_1(1 + r)^{n-1}$$

anonymous · Answer

oops haha forgot to put the "1 +" i actually did that and thanks again

ganeshie8 · Answer

the sequence then becomes,

$$10000,\ \  10000(1+0.2)^{(2-1)},  \ \  10000(1+0.2)^{(3-1)} ,\  .... $$

ganeshie8 · Answer

welcome... :))