Question

You invest p dollars in an account that earns a simple interest of 6%. Th e function
that represents the account balance at the end of the year is f (p) 5 1.06p.
a. Suppose that at the end of the year you deposit $500 in the account. Write
a new function g (p) that shows the balance that will earn interest in the
second year.
b. At the end of every year you add $500 to the account. Th e interest rate
remains 6%. Write a composition of functions f and g to find the account
balance at the end of the third year, before adding the $500. Find that balance for an initial investment

Answer 1

of $1000.