Question

Please answer the question and leave an explanation on how to solve each part. Thank you in advance!

Answer 1

The solutions are

• it is going to take 15.9 months to raise 10000 dollars

• You will have $37.31 after you have bought the car
• The money deficit would be $37.31

How to solve the question

a. 10000 = 9359.08e(0.05)

e⁰⁰⁵ = 10000/9359.08

= 0.05 = ln(10000/9359.08)

= 1.325 years

convert to months = 15.9 months

Hence it is going to take 15.9 months to raise 10000 dollars

b. 9359.08 x e^(0.05 x1.25)

= 9962.69

10000 - 9962.69

= $37.31

You will have $37.31 after you have bought the car

c. The money loss and the deficit would be same as above $37.31

d. ln(e^a) = a

We can clearly see that the money cannot be raised in the 15 months from $ 9359.08. there is a deficit amount of $37.31

Read more on compound interest here: brainly.com/question/24924853

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