Question

Confusion? Please help! If you save two pennies on January 1, four pennies on January 2, six pennies on January 3, and continue this pattern for one year (not a leap year), what will be the value of your entire savings, in dollars, at the end of that one year? Express your answer as a decimal rounded to the nearest hundredth.

Answer 1

I believe it is $7.30 You are not multiplying by $0.02 but simply adding on $0.02 until you get to the end of the year. Next, you would use the formula S (savings) = (n/2)(t + o), where (n) is the number of terms, number of day, (t) is the first term, and (o) is the original (years worth of money) term. So, (365/2)(0.02 + 7.3) = 1335.9.

Your answer is $1335.90.