Determining how much money will be in the account of Maite at the end of each year, we use an exponential growth factor, since this is a geometric sequence.
1. This situation represents a geometric sequence.
A geometric sequence increases by a common exponential growth factor.
2. The common exponential factor is 1.03 (which gives a growth rate of 3% annually). See how this factor is determined below.
3. At the end of the seventh year, Maite will have $1,194.05 in the account. See the calculation below.
Data and Calculations:
Year Amount
1 $1,000.00
2 $1,030.00
3 $1,060.90
4 $1,092.73
5 $1,125.51
6 $1,159.27 ($1,125.51 * 1.03)
7 $1,194.05 ($1,159.27 * 1.03)
The common exponential factor = 1.03 (1 + 0.03)
To obtain the common exponential factor, subtract Year 2 account balance from Year 1 account balance. Divide the result by Year 1 account balance. This operation can also be carried out with Year 2 and Year 3 balances or Year 4 and Year 5 balances.
To determine how much money will be in the account of Maite at the end of Year 6, using Year 5 as a base = (Year 5 account balance * Exponential Factor)
= $1,159.27 ($1,125.51 * 1.03)
To determine Year 7 account balance, we use Year 6 above as the base
= $1.194.05 ($1,159.27 * 1.03)
Learn more about geometric sequence and exponential growth here: https://brainly.com/question/7154553
Answer:
This situation represents a geometric sequence.
The common ratio is 1.03
At the end of the seventh year, Maite will have $1,194.06 in the account.
Step-by-step explanation:
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