Trina borrowed $460 from a friend. Her friend charged her 5% simple annual interest.
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If each years cumulate an increase of 1100 dollars, then the cost after 22 years will be the base cost (27000) plus 22 increases (22*1100), for a total of
This relates to arithmetic series as follows: a series is arithmetic if, given a starting element , every next element is given by adding a fixed number, called common difference,
. So, the first terms are
So, you can see that the element is obtained by adding n times the common ratio to the starting element.
Since the element represents the cost after n years, we are interested in the element
As we had already calculated.