Cameron deposited $650 in an account that pays 4% interest compounded annually. Write a sequence representing the amount Cameron receives in interest each year for the next 4 years. Round each term to the nearest cent.
A) $26.00, $52.00, $78.00, 104.00
B) $26.00, $52.00, $104.00, $208.00
C) $26.00, $27.04, $28.12, $29.25
D) $26.00, $27.04, $27.46, $27.62

Question

Quizplus · Accepted Answer

The interest is compounded annually, so each year's interest is calculated on the new total amount, not just the original principal. The sequence shows the interest for each year, correctly compounded and rounded to the nearest cent.

Cameron Deposited $650 in an Account That Pays 4% Interest