Let the initial Investment be $P_{0}$ . The Interest is compounded on a monthly basis at 12% annual interest rate. After 17 years, the Investment amounts to $60,000.

As the annual interest rate is 12%, the monthly interest rate is 1%.

Since this is a compound interest problem, the total amount can be modeled as follows: $P(t)=P_{0}(1+\frac{i}{100})^{t}$

Here $i$ is the interest rate, i.e $1$ , and t is the number of time periods, i.e $17\textrm{ years x }12\frac{\textrm{months}}{\textrm{year}}$ = $204\textrm{ months}$

$60,000=P_{0}\textrm{ x }(\frac{101}{100})^{204}$

$P_{0}=7881.18$

∴ Initial Investment = $7881.18

4 0

2 years ago

A man bought a bicycle for $400 and sold it at a loss of 35%. How much money did he lose?

DedPeter [7]

If he bought the bike for $400 and lost 35% of his profit, you would divide 35 by 100. Next, you would multiply that number (0.35) by 400. When you do that, you get an answer of $140. In conclusion, if he bought the bike for $400 and sold it at a loss of 35%, he would lose $140 from that $400.

Additionally, if you wanted to know what exactly he sold it for, you would simply subtract 140 from 400. Which would be $260.

So, he bought the bike for $400, but when he resold it, he lost $140 of that pay. Basically, he resold the bike for $260.

I hope this helps! :) Let me know if you need help with anything else!

8 0

2 years ago