Question

Each year a salesperson is paid a bonus of $2000 which is banked into the same account. It earns a fixed rate of interest of 6% p.a. with interest being paid annually. The total amount in the account at the end of each year is calculated as follows:
A0 = 2000
A1 = A0 x 1.06 + 2000
A2 = A1 x 1.06 + 2000 and so on.
Find the total bank balance after 10 years, assuming there are no fees or charges.

Answer 1

$3200 dollars in the account