If [math]s_{\overline{n}|} = 60[/math], [math]s_{\overline{2n}|} = 240[/math], find [math]s_{\overline{3n}|}.[/math]

• 700
• 730
• 760
• 770
• 780

References

Hlynka, Myron. "University of Windsor Old Tests 62-392 Theory of Interest". web2.uwindsor.ca. Retrieved November 23, 2023.

Solution: E

[[math]] s_{\overline{2 n} \mid}=s_{\overline{n} \mid}+(1+i)^n s_{\overline{n} \mid} \implies 240=60+60(1+i)^n \text {. } [[/math]]

Thus [math](1+i)^n=3[/math]. Hence

[[math]] s_{\overline{3n} \mid}=s_{\overline{n} \mid}+(1+i)^n s_{\overline{2n} \mid}=60+3(240)=780 . [[/math]]

References

Hlynka, Myron. "University of Windsor Old Tests 62-392 Theory of Interest". web2.uwindsor.ca. Retrieved November 23, 2023.