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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.

Apr 23, 2022

#1
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There is probably a formula for this, but I'm not sure what it is   (maybe someone else will know !!)

By brute force, I'll get you started.....you should be able to see the pattern

800 (1.08) =  864        at the end of the first year

( 800 + 864)(1.08)   = 1797.12     at the end of the second year

(800 + 1797.12) *(1.08)   = 2804.89  at the end of the third year

(800 + 2804.89)(1.08)   = 3893.28   at the end of the fourth year

Follow  this pattern  until you have reached the end of the tenth year ......that will be your accumulated amount   Apr 23, 2022
#2
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CPhill: That is compounded annually! The question says "8% simple interest".

1 - \$800 x 0.08 ==\$64 simple interest. \$ 800 + \$64 ==\$864.00 principal + interest for the 1st year. Continue like that for 10 years.

Apr 23, 2022