Answer:
- <u>The rate of return is 8.15%</u>
- <u>This is a good investment</u>
<u></u>
Explanation:
For the first question, you need to find the rate that makes the present value of a stream of ten constant annual payments of $15,000 equal to the $100,000 investment.
The formula that returns the present value of a constant payment is called the annuity formula and is:
![Present\text{ }value=payment\times \bigg[\dfrac{1}{r}-\dfrac{1}{r(1+r)^t}\bigg]](https://tex.z-dn.net/?f=Present%5Ctext%7B%20%7Dvalue%3Dpayment%5Ctimes%20%5Cbigg%5B%5Cdfrac%7B1%7D%7Br%7D-%5Cdfrac%7B1%7D%7Br%281%2Br%29%5Et%7D%5Cbigg%5D)
In your problem you know:
- Present value: $100,000
- payment: $15,000
- r: ?
- t: 10
You cannot solve for r directly. You must guess a value and calculate the right side of the equation until to you find the rate that makes it equal to 100,000.
Try 5%:
![\$15,000\times \bigg[\dfrac{1}{0.05}-\dfrac{1}{0.05(1+0.05)^{10}}\bigg]=\$115,826](https://tex.z-dn.net/?f=%5C%2415%2C000%5Ctimes%20%5Cbigg%5B%5Cdfrac%7B1%7D%7B0.05%7D-%5Cdfrac%7B1%7D%7B0.05%281%2B0.05%29%5E%7B10%7D%7D%5Cbigg%5D%3D%5C%24115%2C826)
Then, the rate of return is greater than 5%. After several trials you will find that the rate of return is 8.15%.
Since this rate is higher than 8%, which is what the company requires, this is a good investment.
Let no be x
Acc to ques
X + 2(1/x) = 3
X + 2/x = 3
X^2 + 2 = 3x
X^2 - 3x + 2 = 0
X^2 - x - 2x + 2 = 0
X (x-1) - 2 (x-1) = 0
(x-2) (x-1) = 0
X= 2 or x =1
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9/16 of the family garden
We can use an equation to solve this:
(3/4) * (3/4) = (9/16)
Answer:
3+2c
Step-by-step explanation:
To translate the phrase into an algebraic expression, you have to analyze the information provided. Three dollars more than twice the cost of a bowl of soups means that given that c is the costs of a bowl of soup, you have to multiply c for 2 as the phrase says twice the cost. Also, it says three dollars more which means that you have to add 3. According to this, the expression is: 3+2c.
6(x-1)
4x
X = 6*x-1*6/6x-6=4x
X= -6=4x-6x
X=-6=-2x
Value of x Is 3