Question

Suppose you save $10 one month and that each month thereafter you save 50 cents more than the preceding month. How much will you have saved by the end of 14 years

Answer 1

Answer:

  $8694.00

Step-by-step explanation:

The series of savings amounts will have 12×14 = 168 terms. The last amount added to the savings account will be ...

  10 + 0.50(168 -1) = 93.50

So, the average amount added is the average of the first and last amounts:

  (10 + 93.50)/2 = 51.75

That multiplied by the number of terms in the series, 168, will give the total amount added to the savings account:

  168 × $51.75 = $8694.00

By the end of 14 years, you have saved $8694.00.