1) Since this is a Continuously Compounded operation in a 10 yrs period, then we can write out the following equation:
2) Plugging into the equation the given data and since Otto is 20 yrs old and he plans to get $4,000 in ten years, we can write out:
3) Thus the rate Otto needs is
Note that since the 0.1386 the six here is greater than 5 then we can round up to the next thousandth, in this case: 0.139. For the 0.1386 is closer to 0.139 (0.004) than to 0.138 (0.006).
Or 13.9%
72 is multiples of 3,9, and 12
Answer:
Let selling price of three-piece suit = x. Applying 7% sales tax, total amount paid = x + xx7 - $152.79. 100 207 100 ०१ This is the $ 152.79 os, x- $142.7943 price after marked down of 40%, let the regular price of three-piece suit be = y. Therefore y [ 3 - 4m] $342.1943 1 - - $237.99 Regular price of 1 piece suit $ 237.99