It is nonequivalent. Figure it out this way. Think about what number has to be multiplied by both the numerator and the denominator of to get to
. It has to be the samee number for the one expression to be equivalent to the other. To get from 5x to x^3, we have to multiply by 1/5x^2. When we do that we get x^3. Good. Now we have to multiply the denominator by the same thing, 1/5x^2.
. As you can see, they are not equivalent.
It will take 54 days for Teri's account to earn an amount of $5000.
<h3>What is compound interest?</h3>Compound interest, also known as interest on principal and interest, is the practice of adding interest to the principal amount of a loan or deposit.
It occurs when interest is reinvested, or added to the loaned capital rather than paid out, or when the borrower is required to pay it, so that interest is generated the next period on the principal amount plus any accumulated interest. In finance and economics, compound interest is common.
It is given by formula
A =
where:
A is final amount
p is principal amount
r is rate of interest and
t, is time period
Given: A= $5000, p=$1500, r=2.25% = 0.0225
To find: time period to get compounded amount
5000=1500×
=
0.0225t = ㏑ ()
t = 53.5099 ≈ 54 days
Learn more about compound interest here:
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