The future value of Gitta's certificate of deposit (CD), for the first five years, is represented by the sequence below. The applied interest is compound interest.

$307.50, $315.00, $322.50, $330.00, $337.50, ...

A. True
B. False

Question

The future value of Gitta's certificate of deposit (CD), for the first five years, is represented by the sequence below. The applied interest is compound interest.

$307.50, $315.00, $322.50, $330.00, $337.50, ...

 		A.	True
 		B.	False

anonymous · Answer

@SolomonZelman

anonymous · Answer

could you help me with this one too

daniellelovee · Answer

ugh your still on compound interest :(
hold on @DanJS , can you help him?

anonymous · Answer

this is the final one.. after this i move to other stuff

anonymous · Answer

@Directrix could you help?

daniellelovee · Answer

thank God! lol

directrix · Answer

Is the interest compounded annually?

danjs · Answer

Compounded interest is exponential... 
Look at the change in the value for each increase in a year.. it is the same . the thing is linear with a slope of 7.5 dollars per year.

danjs · Answer

Compounding interest has a form$$y = A(x)^n$$
This thing has the form $$y=m*x+b$$

directrix · Answer

$307.50, $315.00, $322.50, $330.00, $337.50,

These terms differ by $7.50. Isn't this arithmetic? 

And, how could the interest be a flat $7.50 per year if the earned interested were reinvested into the account.

directrix · Answer

From @DanJS   >> Compounded interest is exponential... 

Well, this is not.

anonymous · Answer

so it would be false then??? im a little confused.. :-/

directrix · Answer

If compounded is exponential and what you have is not, then, yes, false.

directrix · Answer

That is what @DanJS  is circling in his post.

anonymous · Answer

The answer is False

directrix · Answer

That is what we thought. Good to know.

danjs · Answer

Bravo