Math Problem Statement

The sequence: 1, √2, 2, 2√2,... can be represented by the formula a_n = (√2)^(n-1). Brady acquired an inheritance of $20,000 at age 5, but he will not have access to it until he turns 20. If his inheritance is placed in a savings account earning 4.6% interest compounded monthly, how much will Brady's inheritance be worth when he turns 20?

Solution

Problem 8:

The sequence provided is: 1,2,2,22,1, \sqrt{2}, 2, 2\sqrt{2}, \dots

The formula given is: an=(2)n1a_n = (\sqrt{2})^{n-1}.

Checking the Formula:

  • For n=1n = 1: a1=(2)11=(2)0=1a_1 = (\sqrt{2})^{1-1} = (\sqrt{2})^0 = 1
  • For n=2n = 2: a2=(2)21=(2)1=2a_2 = (\sqrt{2})^{2-1} = (\sqrt{2})^1 = \sqrt{2}
  • For n=3n = 3: a3=(2)31=(2)2=2a_3 = (\sqrt{2})^{3-1} = (\sqrt{2})^2 = 2
  • For n=4n = 4: a4=(2)41=(2)3=22a_4 = (\sqrt{2})^{4-1} = (\sqrt{2})^3 = 2\sqrt{2}

Since the formula an=(2)n1a_n = (\sqrt{2})^{n-1} accurately represents the sequence, the answer is True.


Problem 9:

Brady's inheritance problem involves compound interest, calculated using the formula:

A=P(1+rn)ntA = P \left( 1 + \frac{r}{n} \right)^{nt}

Where:

  • P=20,000P = 20,000 (initial principal),
  • r=0.046r = 0.046 (annual interest rate),
  • n=12n = 12 (compounding periods per year),
  • t=15t = 15 (time in years, from age 5 to 20).

Calculation:

A=20000(1+0.04612)12×15A = 20000 \left( 1 + \frac{0.046}{12} \right)^{12 \times 15}

A=20000(1+0.0038333)180A = 20000 \left( 1 + 0.0038333 \right)^{180}

A=20000(1.0038333)180A = 20000 \left( 1.0038333 \right)^{180}

A20000×2.1138357A \approx 20000 \times 2.1138357

A42,276.71A \approx 42,276.71

Brady's inheritance will be worth approximately $42,276.71 when he turns 20.


Do you have further questions or need additional clarifications?


Related Questions:

  1. Can you explain why compound interest grows faster than simple interest?
  2. How does the number of compounding periods affect the final amount?
  3. What would happen if the interest rate were compounded yearly instead of monthly?
  4. How is the sequence formula (2)n1(\sqrt{2})^{n-1} derived?
  5. What happens to Brady's inheritance if the rate changes to 5%?

Tip:

When solving compound interest problems, always confirm the compounding frequency, as it can significantly affect the growth of investments.

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Math Problem Analysis

Mathematical Concepts

Geometric Sequences
Compound Interest
Exponentiation

Formulas

a_n = (√2)^(n-1) for the geometric sequence
A = P (1 + r/n)^(nt) for compound interest

Theorems

Exponential Growth Formula
Compound Interest Theorem

Suitable Grade Level

Grades 10-12