At the beginning of every year, Molly deposits $200 in a savings account that offers an interest rate of 20%, compounded annually. The total amount that Molly will have in her account at the end of 3 years is
$873.6
200 *1.2^3 + 200*1.2^2 + 200*1.2
what expression represents the series 1+5+25+125+625?
Molly and Vitto deposit money into their savings accounts at the end of each month. The table shows the account balances.
If their patterns of saving continue, and neither earns interest nor withdraws any of the money, how will the balances compare after a very long time?
To find the total amount that Molly will have in her account at the end of 3 years, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = total amount
P = principal amount (initial deposit)
r = annual interest rate (expressed as a decimal)
n = number of times interest is compounded per year
t = number of years
In this case, Molly deposits $200 at the beginning of every year, so the principal amount (P) will be $200. The annual interest rate (r) is 20%, which can be expressed as 0.20. The interest is compounded annually, so n = 1. Molly wants to know the total amount at the end of 3 years, so t = 3.
Now let's plug these values into the formula:
A = $200(1 + 0.20/1)^(1*3)
First, simplify the expression inside the parentheses:
A = $200(1 + 0.20)^(3)
Now, perform the calculations inside the parentheses:
A = $200(1.20)^(3)
Next, raise 1.20 to the power of 3:
A = $200(1.728)
Finally, multiply $200 by 1.728 to get the total amount:
A = $345.60
Therefore, Molly will have $345.60 in her savings account at the end of 3 years.