the question is - Helen sets up a prize fund with a single investment of $1000 to provide her school with an annual prize valued at $72. The fun accrues interest at a rate of 6% per annum, compunded annualy. the first prize is awarded one year after the investment is set up."
then it asks let $Bn be the balance in the fund at the end of n years(and after the nth prize) show that Bn= 1200-200 x (1.06)^n
now i can get to the point where Bn= 1000(1.06)^n - 72[1.06^n-1/0.06]
then the worked answer throws in the next line as 1000(1.06)^n - 1200(1.06^n-1) i have noo idea where that 1200 came from?? any help with this would be greatly appreciated
then it asks let $Bn be the balance in the fund at the end of n years(and after the nth prize) show that Bn= 1200-200 x (1.06)^n
now i can get to the point where Bn= 1000(1.06)^n - 72[1.06^n-1/0.06]
then the worked answer throws in the next line as 1000(1.06)^n - 1200(1.06^n-1) i have noo idea where that 1200 came from?? any help with this would be greatly appreciated