1. An investor deposits $100 on the first day of each month in an account that pays 2% interest, compounded monthly. The balance A in the account at the end of 5 years is
A = 100 (1 + 0.02 / 12)1 + . . . + 100 (1 + 0.02 / 12)60.
Use the following information. A state government gives property owners a tax rebate with the anticipation that each property owner will spend approximately p% of the rebate, and in turn each recipient of this amount will spend p% of what he or she receives, and so on. Economists refer to this exchange of money and its circulation within the economy as the "multiplier effect." The multiplier effect operates on the idea that the expenditures of one individual become the income of another individual. For the given tax rebate, find the total amount of spending that results, assuming that this effect continues without end.
Tax rebate .............................................. P%
2. $400 ..................................................75%
3. %600 ..................................................72.5%