The balance of an investment, in dollars, at the end of each year where interest is compounded annually is given by $A_n=1.06A_{n-1}$`A``n`=1.06`A``n`−1, $A_0=5000$`A`0=5000.

a

State the annual interest rate.

b

Determine the balance at the end of the first year.

c

Use the sequences facility on your calculator to determine the balance at the end of $10$10 years.

Give your answer to the nearest cent.

Easy

Approx 4 minutes

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