Question

Each month, the balance in Freda's bank account is 1.003 times as large as the previous month's due to interest. If Freda does not deposit or withdraw any money from this account and she begins with $2500, find the balance in this account at the beginning of the 36th month.

Answer 1

What you want to do is multiply 2500 by 1.003, which will get you 2507.5. Freda has $7.50 more this month. Now multiply 2507.5 by 1.003

Answer 2

Actually what you will want to do is multiply 2500 by 1.003 36 times and the resulting number will be the amount of money in her bank on the 36th month.