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marissa [1.9K]
3 years ago
11

Your parents will retire in 20 years. They currently have $300,000 saved, and they think they will need $1,450,000 at retirement

. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds?
Mathematics
1 answer:
Tanya [424]3 years ago
6 0
N=20 periods (years)
present value, P = 300,000
future value, F= 1450000
i=annual interest rate

F=P(1+i)^n
1450000=300000(1+i)^{20}
(1+i)^{20}=1450000/300000
(1+i)^{20}=29/6
(1+i)=(29/6)^{1/20}
i=(29/6)^{1/20}-1
i=(29/6)^{1/20}-1
=1.081963-1
=0.081963
=8.1963%

Answer: they need to earn 8.1963% or more to achieve their goal.
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Complete question:

A police car is located 50 feet to the side of a straight road. A red car is driving along the road in the direction of the police car and is 130 feet up the road from the location of the police car. The police radar reads that the distance between the police car and the red car is decreasing at a rate of 75 feet per second. How fast is the red car actually traveling along the road.

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The red car is traveling along the road at 80.356 ft/s

Step-by-step explanation:

Given

Police car is 50 feet side off the road

Red car is 130 feet up the road

Distance between them is decreasing at the rate of 75 feet per sec

Let x be how far the police is off the road.

Let y be how far the red car is up the road.  

Let h be the distance between the police and the red car.

This forms a right triangle so we can use the Pythagorean theorem, to solve for h

h² = x² + y²

h² = 50² + 130²

h² = 19400

h = √19400

h = 139.284 ft

Again;

Let dx/dt be how fast the police is traveling toward the road.

Let dy/dt  be how fast the red car is traveling along the road.

Let dh/dt be how fast the distance between the police and the car is decreasing.

Recall that, h² = x² + y² (now differentiate with respect to time, t)

2h(dh/dt) = 2x(dx/dt) + 2y(dy/dt)

divide through by 2

h(dh/dt) = x(dx/dt) + y(dy/dt)

since the police car is not, dx/dt = 0

and dy/dt is the how fast is the red car actually traveling along the road

139.284(75) = 50(0) + 130(dy/dt)

10446.3 = 0 + 130(dy/dt)

dy/dt = 10446.3 / 130

dy/dt = 80.356 ft/s

Therefore, the red car is traveling along the road at 80.356 ft/s

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