Interactive practice questions
$\$3900$$3900 is invested for three years at a rate of $10%$10% per annum, compounding annually.
a
Complete the recurrence relation for this situation.
$t_{n+1}$tn+1$=$=$\editable{}$$t_n$tn, where $t_0$t0$=$=$\editable{}$.
b
Use the sequence facility of your calculator to complete the table below to determine the final value of the investment.
| Balance + interest | Total balance | Interest earned | |
|---|---|---|---|
| First year | $-$− | $\$3900$$3900 | $\$390$$390 |
| Second year | $\$3900+\$390$$3900+$390 | $\$4290$$4290 | $\$429$$429 |
| Third year | $\$4290+\$$$4290+$$\editable{}$ | $\$$$$\editable{}$ | $\$$$$\editable{}$ |
| Fourth year | $\$4719$$4719$+$+$\$$$$\editable{}$ | $\$$$$\editable{}$ | $-$− |
c
Calculate the total interest earned over the three years.
Medium
2min
$\$8000$$8000 is invested at $6%$6% p.a., compounded annually.
Medium
3min
Callum invests $\$5700$$5700 into an investment account that pays $3.2%$3.2% per annum, compounded annually.
Medium
2min
Erica invests $\$50000$$50000 into an investment account that pays $2.8%$2.8% per annum, compounded annually.
Medium
2min
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