Ms. Montgomery invested $800 at 8% simple interest at the beginning of each year for a period of ten years. Find the total accumulated value of all the investments at the end of the 10-year period.
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Ms. Montgomery invested $800 at 8% simple interest at the beginning of each year for a period of ten years. Find the total accumulated value of all the investments at the end of the 10-year period.
Beginning year balance End of year balance
1st yr 800.00 1.08 • 800.00 = 864.00
2nd yr 864.00 1.08 • 864.00 = 933.12
3rd yr 933.12 1.08 • 933.12 = 1007.77
4th yr 1007.77 1.08 • 1007.77 = 1088.39
5th yr 1088.39 1.08 • 1088.39 = 1175.46
6th yr 1175.46 1.08 • 1175.46 = 1269.50
7th yr 1269.50 1.08 • 1269.50 = 1371.06
8th yr 1371.06 1.08 • 1371.06 = 1480.74
9th yr 1480.74 1.08 • 1480.74 = 1599.20
10th yr 1599.20 1.08 • 1599.20 = 1727.14
Another way to calculate the final balance would be 800 • 1.0810 = 1727.14
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