PLEASE HELP URGENT!!!!! plz plz plz plz plz plz plz plz plz plz plz help
James deposited $1400 into a savings account to save for a motorcycle. Based on the interest rate of the account, he estimates that his money will grow according to the following table.
Years Value
0 $1400
1 $1428
2 $1457
3 $1486
4 $1516
The values follow a geometric sequence. What is the common ratio of the sequence?
Enter your answer as a decimal rounded to two decimal places, if necessary, like this: 42.53
Answers
Given:
James deposit $1400
The value of the the deposit is $1428 at the end of 1st year.
The value of the the deposit is $1457 at the end of 2nd year.
The value of the the deposit is $1486 at the end of 3rd year.
The value of the the deposit is $1516 at the end of 4th year.
To FInd:
The common ratio
Solution:
The common ratio here is the multiplier factor
Find the interest earned at the end of 1 year
Interest = Amount in bank - Deposit
Interest = 1428 - 1400
Interest = $28
Find the interest rate:
Interest rate = (interest earned ÷ deposit) x 100
Interest rate = (28 ÷ 1400) x 100
Interest rate = 2%
Find the common ratio:
Common Ratio = 1 + 2%
Common Ratio = 1 + 0.02
Common Ratio = 1.02
Check:
1400 x 1.02 = $1428
1428 x 1.02 = $1457
1457 x 1.02 = $1486
1486 x 1.02 = $1516
Answer: The common ratio is 1.02