Exam Preparation Complete Study Guide with Solution 2025/ 2026
Intro to College Math Milestone
Exam
4 Preparation Complete Study Guide with Solution 2025/ 2026
Intro to College Math Milestone 4
7/8 that's 88%
RETAKE
7 questions were answered correctly.
1 question was answered incorrectly.
1
An initial deposit of $800 is put into an account that earns 5% interest,
compounded annually. Each year, an additional deposit of $800 is
added to the account.
Assuming no withdrawals or other deposits are made and that the
interest rate is fixed, the balance of the account (rounded to the
nearest dollar) after the seventh deposit is __________.
$5,624
$6,004
$5,628
$6,514
RATIONALE
To find the account balance that was compounded annually AND also
had $800 deposited each year, use the following formula:
where:
= initial balance = 800
r = growth factor (1 + APR) = 1 + 0.05 = 1.05
n = number of years/deposits = 7
Substitute the known values and solve for , the total balance after
7 years:
This study source was downloaded by 1827175 from cliffsnotes.com on 01-08-2026 18:09:10 GMT -06:00
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Intro to College Math Milestone
Exam
4 Preparation Complete Study Guide with Solution 2025/ 2026
CONCEPT
Savings With Regular Investments using Geometric Sequence
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2
You have saved up $150,000 to invest for retirement. You would like to
earn $20,000 of interest, and you think you will earn an average of 6%
interest in a CD.
Using a simple interest calculation, how many years will you need to
invest your money to meet your goal?
2.22 years
1.54 years
2.58 years
1.23 years
RATIONALE
To find the answer, use the formula for simple interest: I = PRT
First, convert the interest rate to a decimal.
Place the numbers into the simple interest formula.
Combine like terms to start isolating the variable t.
Divide both sides by 9,000 to isolate the variable.
Solution.
CONCEPT
Simple Interest
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3
This study source was downloaded by 1827175 from cliffsnotes.com on 01-08-2026 18:09:10 GMT -06:00
Intro to College Math Milestone 4.pdf Page 2 of 8 Exam Preparation Complete Study Guide with Solution 2025/ 2026
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Intro to College Math Milestone
Exam
4 Preparation Complete Study Guide with Solution 2025/ 2026
Intro to College Math Milestone 4
7/8 that's 88%
RETAKE
7 questions were answered correctly.
1 question was answered incorrectly.
1
An initial deposit of $800 is put into an account that earns 5% interest,
compounded annually. Each year, an additional deposit of $800 is
added to the account.
Assuming no withdrawals or other deposits are made and that the
interest rate is fixed, the balance of the account (rounded to the
nearest dollar) after the seventh deposit is __________.
$5,624
$6,004
$5,628
$6,514
RATIONALE
To find the account balance that was compounded annually AND also
had $800 deposited each year, use the following formula:
where:
= initial balance = 800
r = growth factor (1 + APR) = 1 + 0.05 = 1.05
n = number of years/deposits = 7
Substitute the known values and solve for , the total balance after
7 years:
This study source was downloaded by 1827175 from cliffsnotes.com on 01-08-2026 18:09:10 GMT -06:00
Intro to College Math Milestone 4.pdf Page 1 of 8 Exam Preparation Complete Study Guide with Solution 2025/ 2026
https://www.cliffsnotes.com//study-notes/14657372
, Exam Preparation Complete Study Guide with Solution 2025/ 2026
Intro to College Math Milestone
Exam
4 Preparation Complete Study Guide with Solution 2025/ 2026
CONCEPT
Savings With Regular Investments using Geometric Sequence
Report an issue with this question
2
You have saved up $150,000 to invest for retirement. You would like to
earn $20,000 of interest, and you think you will earn an average of 6%
interest in a CD.
Using a simple interest calculation, how many years will you need to
invest your money to meet your goal?
2.22 years
1.54 years
2.58 years
1.23 years
RATIONALE
To find the answer, use the formula for simple interest: I = PRT
First, convert the interest rate to a decimal.
Place the numbers into the simple interest formula.
Combine like terms to start isolating the variable t.
Divide both sides by 9,000 to isolate the variable.
Solution.
CONCEPT
Simple Interest
Report an issue with this question
3
This study source was downloaded by 1827175 from cliffsnotes.com on 01-08-2026 18:09:10 GMT -06:00
Intro to College Math Milestone 4.pdf Page 2 of 8 Exam Preparation Complete Study Guide with Solution 2025/ 2026
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