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aalyn [17]
3 years ago
15

future value = P × (1+ i)t Kate wants to have $25,000 in 16 years. How much does she need to invest if the interest rate is 6 pe

rcent per year?
Mathematics
1 answer:
kolbaska11 [484]3 years ago
8 0
If Kate wants $25,000, then that's the future value.
i is the rate of change, which is 6% in this case, which is rewritten as 0.06.
P is the starting value, or what she has to originally put in, which is what we need to find.
You put times t but it's actually to the power of t, which is time.
The time in this problem is 16 years, so t is 16.
Let's rewrite the equation with the plugged in values.
25,000 = P(1 + 0.06)^16
Now simplify:
25,000 = P(1.06)^16
25,000 = P(1.06^16)
25,000 = P(2.54)
How do you find P?
Isolate the variable!
To do this, divide both sides by 2.54.
25,000 / 2.54 = 9842.52
So that means she needs to invest an original amount of $9,842.52 if she wants to have $25,000 in 16 years with a 6% interest rate per year.

Now just check your work:
25,000 = 9842.52(1 + 0.06)^16
25,000 = 9842.52(1.06^16)
25,000 = 9842.52(2.54)
25,000 = 25,000
It works!
So $9,842.52 is the correct answer.
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Let's first translate all our givens to numbers. We'll start off by assigning variables that are easy to work with (x, y and z). 
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Now that we have done that, we need to translate all our givens into numbers. Here is how that would look like:
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z = y + 2           ←Diagonal = 2 inches more than width
If we draw a diagram, we can see that the diagonal, length, and width all create a right triangle, which means that we can use the Pythagorean Theorem. By using right triangle postulates and theorems, we can deduce that the diagonal is the hypotenuse. Here is what our setup looks like:
x² + y² = z²
<em />Now, all we need to do is plug in the expressions we created for y and z:
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When we solve for x, we get x = 20. Now, we just plug the x value back into the y equation to get 99. Therefore, the length equals 99 inches and the width equals 20 inches. Hope this helps and have a great day!
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Step-by-step explanation:


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I think the answer is C
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