Answer:
Step-by-step explanation:
we know that
The formula to calculate continuously compounded interest is equal to
where
A is the Final Investment Value
P is the Principal amount of money to be invested
r is the rate of interest in decimal
t is Number of Time Periods
e is the mathematical constant number
we have
substitute in the formula above
solve for P
Answer:
The commission would be $ 920.
Step-by-step explanation:
Given,
Sales in 1997 = $ 9500,
Since, there is a commision of 8 % on the first $ 7500 of sales, 16% on the next $ 7500 of sales, and 20% on sales over $ 15,000,
If x represents the total sales,
Commission for x ≤ 7500 = 8% of x = 0.08x,
Commission for 7500 < x ≤ 15000 = 8% of 7500 + 16% of (x-7500)
= 600 + 0.16(x-7500),
Commission for 7500 < x ≤ 15000 = 8% of 7500 + 16% of 7500 + 20% of (x-15000)
= 600 + 1200 + 0.20(x-15000)
= 1800 + 0.20(x-15000)
Thus, the function that shows the given situation,
Since, 9500 lies between 7500 and 15000,
Therefore, the commission would be,
f(9500)= 600 + 0.16(9500 - 7500) = 600 + 320 = $ 920