with a(0) = 150. Then you just run the recurrence forward for 39 months. Answer is 182.20809 which when rounded is 182.21

From the recurrence you can also get a formula:

Question 3) is done the same way.

vatso

2013-02-20 07:40:47

1) What is the accumulated value of $150 invested for three years and three months when the rate of interest is 0.5% per month? The right answer is $182.21. How to you get to that figure?

2) $100 invested for two years at an interest rate of 2% per quarter. What is the difference between the compound and simple interest earned on this investment? The correct answer is $1.17. How you get this value?

3) What is the future value of £100 invested at 1% per month for five years? The correct answer is $181.67. How do you get that value? Again, thank you in advance!!!!