A principal of $2000 is invested at 8% interest, compounded annually. How much will the investment be worth after 5 years?
1 answer:
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Given
1. 4 x 1/7
2. 12 x 2 5/6
procedure
1. The answer is 4 x 1/7 is less than 4
2. The answer is 12 x 2 5/6 is greater than 12
a) Step 3 is correct. You can apply the log to both sides, as long as the log base is the same.
b) Step 4 is incorrect. The expression should simplify to 3, and not 9. This is because 3^3 = 27. Recall that
is equivalent to
. Based on that, we can say
is equivalent to
So the final answer should be x = 3
If we check this with the original equation, then we have
7*3^x = 189
7*3^3 = 189
7*27 = 189
189 = 189
So the answer is confirmed.