6
QuizMultiple Choice

Simple Interest and Arithmetic Sequences — Quiz

Question 6 • Advanced Financial Algebra

Dashiel invests $1,000 at a simple interest rate of 3% per year. What is the sequence of amounts in his investment account at the start of the investment and at the end of each of the next three years?

Answer
A
$1,000, $1,030, $1,060, $1,090
B
$1,000, $1,030, $1,090, $1,180
C
$1,000, $1,030, $1,060, $1,120
D
$1,030, $1,060, $1,090, $1,120

Explanation

Simple interest is calculated on the original $1,000 each year. Three percent of $1,000 is $30, so the balance increases by $30 annually: $1,000 at the start, then $1,030, $1,060, and $1,090. This matches choice A.

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