Question

I NEED HELP QUICKLY PLEASE PLEASE PLEASE

Answer 1

Answer:

The compound interest formula is :

$A=p(1+\frac{r}{n})^{nt}$

Now, we have to find p.

A = 2000

r = 2.8% or 0.028

n = 1

t = 3

Putting the values in formula we get;

$2000=p(1+\frac{0.028}{1})^{3}$

=> $2000=p(1.028)^{3}$

=> $2000=p(1.08637)$

=> $2000/1.08637=p$

So, p = $1840.99 rounded to $1841.

Part A: John should invest $1841 now to have $2000 in 3 years.

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Part B:

Now p = 1841

r = 0.028

n = 1

t = 5

$A=1841(1+\frac{0.028}{1})^{5}$

=> $A=1841(1.028)^{5}$

=> $A=1841(1.1480)$

A = $2113.46

Hence, John will have $2113.46 in 5 years.

Answer 2

A. you plug in to a calculator, which will give 1840.986 so you need to round up to 1840.99. if you truncate it to .98 then he won't reach 2000 in 3 years

b. for this one if you look at the equation given to find the principle it is principle = result (1+rate) ^ -time

if you re arrange this you get result=principle (1+rate)^time
so result = 1840.99(1.028)^5
= 2113.57