Brenda plans to reduce her spending by $50 a month. What would be the future value of this reduced spending over the next 10 yea
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For the given question, the summation that represents the money in account is:
The principal amount if compounded annually, the formula that represents the amount to be received after n years is:
where A is the amount received after compounding, P is the principal, r is the rate of interest and t is the tenure.
Given:
Annual interest rate(r) is 5.5%
Principal is(P) $300
Tenure is(t) 10 years
On substituting the values in the formula
The amount received after compounding at the end of 1 year will be:
Similarly, the amount to be received after 2 years will be:
The amount received after 10 years will be:
upto 10 years
Therefore the summation that represents the money in account after 10 years is:
Learn more about compound interest here: