WEBVTT
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so we deposit a hundred dollars at the end of
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every month into an account that pays three percent interest
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per year. Compounded monthly. That's a key word
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here monthly. Then the amount of interest accumulated after
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and months is given by the following part. A
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. Let's find the first six terms. So that's
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just eye. One eye, too upto I six
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. Now using a calculator here in Wolfram, I
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have plotted out the first six terms here, going
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a few decimal places. So, of course,
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in our problem, it will make sense to round
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off to to places after the decimal, cause it's
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money so you can pause the screen. Recorded these
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values easily Your first six terms. I want through
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I six now for Part B. How much interest
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will you have earned after two years? Well,
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noticed that two years equals twenty four months, and
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it's important here that we're using months because this model
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here, this this formula is in terms of months
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, not years. So we use and equals twenty
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four. So really, in part B. What
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they're asking for is the value of I twenty four
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. So all you do plug in twenty four friend
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and then goto a calculator and go ahead and plug
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this in if you want an approximation and then minus
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end, which is twenty four. So that's the
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exact answer. And if you want to round off
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because it's this is a dollar amount lets this will
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be seventy point twenty eight. So seventy dollars in
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twenty eight cents after two years, and that's our
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answer for Part B.