Arithmetic or Geometric
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Arithmetic or Geometric

A person deposited $500 in a savings account that pays 5% annual interest that is compounded yearly. At the end of 10 years, how much money will be in the savings account.

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Arithmetic or Geometric

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Jun 21, 2011
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Arithmetic or Geometric
by: Staff

The question:

A person deposited $500 in a savings account that pays 5% annual interest that is compounded yearly. At the end of 10 years, how much money will be in the savings account.


The answer:


A compound interest calculation is a geometric series because there is a constant ratio between successive terms.


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