A Deposit of $225 Is Made at the Beginning of Each

question 132

Multiple Choice

A deposit of $225 is made at the beginning of each month into an account at an annual interest rate of $3 \%$ compounded monthly. The balance in the account after $n$ months is $A _ { n } = 225 ( 401 ) \left( 1.0025 ^ { n } - 1 \right)$ . Find the balance in the account after 4 years by computing the 48 th term of the sequence. Round your answer to two decimal places.

• A) \(\$ 11,488.17\)
• B) \(\$ 905.64\)
• C) \(\$ 9,172.05\)
• D) \(\$ 24,404.88\)
• E) \(\$ 1,818.08\)

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Definitions:

Units of Output

The amount of product that a company produces in a given period.

Workers

Individuals engaged in any form of economic activity to earn a wage or salary, including both skilled and unskilled labor.

Total Cost

The complete cost of production that includes both variable and fixed costs.

Economics

The social science that studies how individuals, governments, firms and nations make choices on allocating scarce resources to satisfy their unlimited wants.