An investment company pays 8% compounded semiannually. You want to have $12,000 in the future. (A) How much should you deposit
1 answer:
Before we start answering the question, let's define the compound interest formula:
Where:
<span>'A'</span> is the amount of money in dollars
'P' is the principal amount of money in dollars
'r' is the interest rate (decimal)
'n' is the number of times interest is compounded per year
't' is the time in years
<span>(A) Find Principal Amount
</span><u /><span><u>Given:</u>
</span>A = 12,000
P = ?
r = 0.08
n = 2 (semiannually)
t = 5
Now we plug our values in and solve:
∴ You would have to deposit $8106.77 in order to have $12,000 in 5 years from now.
(B) Find Principal Amount
Same given values as above, with the exception of 't' which is now 10 instead of 5.
∴ You would have to deposit $5476.64 in order to have $12,000 in 10 years from now.
Hope this helps!
Where:
<span>'A'</span> is the amount of money in dollars
'P' is the principal amount of money in dollars
'r' is the interest rate (decimal)
'n' is the number of times interest is compounded per year
't' is the time in years
<span>(A) Find Principal Amount
</span><u /><span><u>Given:</u>
</span>A = 12,000
P = ?
r = 0.08
n = 2 (semiannually)
t = 5
Now we plug our values in and solve:
∴ You would have to deposit $8106.77 in order to have $12,000 in 5 years from now.
(B) Find Principal Amount
Same given values as above, with the exception of 't' which is now 10 instead of 5.
∴ You would have to deposit $5476.64 in order to have $12,000 in 10 years from now.
Hope this helps!
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Hi there,
This is the original inequality equation:
So, we first need to find the critical points of equality, and we can do that by switching the less than sign to an equal sign.
Now, we multiply both sides by x + 1:
Then, we multiply both sides by x - 1:
Next, we subtract x² from both sides:
After that, we solve for x. We do this by adding -x to both sides and dividing by 2. Doing so gives us x = 0, which is our first critical point. We need to find a few more critical points by testing x = -1 and x = 1. Here is how we do that:
<span>x = <span>−1 </span></span>(Makes left denominator equal to 0)<span>x = 1 </span>(Makes right denominator equal to 0)Check intervals in between critical points. (Test values in the intervals to see if they work.)<span>x <<span>−1 </span></span>(Doesn't work in original inequality)<span><span><span>−1 </span>< x </span><0 </span>(Works in original inequality)<span><span>0 < x </span>< 1 </span>(Doesn't work in original inequality)<span>x > 1 </span><span>(Works in original inequality)
Therefore, the answer to your query is -1 < x < 0 or x > 1. Hope this helps and have a phenomenal day!</span>
This is the original inequality equation:
So, we first need to find the critical points of equality, and we can do that by switching the less than sign to an equal sign.
Now, we multiply both sides by x + 1:
Then, we multiply both sides by x - 1:
Next, we subtract x² from both sides:
After that, we solve for x. We do this by adding -x to both sides and dividing by 2. Doing so gives us x = 0, which is our first critical point. We need to find a few more critical points by testing x = -1 and x = 1. Here is how we do that:
<span>x = <span>−1 </span></span>(Makes left denominator equal to 0)<span>x = 1 </span>(Makes right denominator equal to 0)Check intervals in between critical points. (Test values in the intervals to see if they work.)<span>x <<span>−1 </span></span>(Doesn't work in original inequality)<span><span><span>−1 </span>< x </span><0 </span>(Works in original inequality)<span><span>0 < x </span>< 1 </span>(Doesn't work in original inequality)<span>x > 1 </span><span>(Works in original inequality)
Therefore, the answer to your query is -1 < x < 0 or x > 1. Hope this helps and have a phenomenal day!</span>