Chapter 14, Problem 3DMC

a)

To determine

To calculate: The arithmetic sequence with each term representing the sum of the investment and cumulative simple interest earned at the beginning of each quarter. Also find amount after 20 years. In which first term is $\$1000$ and simple interest is $4\%$. Use the method if interest is calculated $n$ times a year, the interest rate for each interval is $\frac{r}{n}$, where $r$ is the annual interest rate.

b)

To determine

To calculate: The geometric sequence with each term representing the amount in the account at the beginning of each quarter if interest is compounded quarterly also find the sum of money after 20 years. in which first term is $\$1000$ and compound interest is $4\%$. Use the method

If interest is calculated $n$ times a year, the interest rate for each interval is $\frac{r}{n}$, where $r$ is the annual interest rate.