#### sodiumziha

##### Member

At the start of a month, Jo opens a bank account and makes a deposit of $500.

At the start of each subsequent month, Jo makes a deposit which is 1% more

than the previous deposit.

At the end of every month, the bank pays interest of 0.3% (per month) on the

balance of the account.

(i) Explain why the balance of the account at the end of the second month is $500 (1.003)^2 + $500 (1.01) (1.003) .

(ii) Find the balance of the account at the end of the 60th month, correct to

the nearest dollar.

I can do (i), but (ii) just looks so hard, because you have one number (1.01) increasing in power, but then (1.003) decreasing in power, it feels so complicated. Can someone explain this question as simple as possible?