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Sauron [17]
3 years ago
14

Cromwell is acquiring some land for $1200000 in exchange for semi annual payments of $75000 at an interest rate of 6.35%. how ma

ny years will it take cromwell to pay for this purchase
Mathematics
1 answer:
Finger [1]3 years ago
4 0
The formula of the present value of annuity ordinary is
Pv=pmt [(1-(1+r/k)^(-kn))÷(r/k)]
Pv present value 1200000
PMT semiannual payment 75000
R interest rate 0.0635
K compounded semiannual 2
N time?
1200000=75000[(1-(1+0.0635/2)^(-2n))÷(0.0635/2)]
Solve for n
1,200,000÷75,000=[(1-(1+0.0635/2)^(-2n))÷(0.0635/2)]

16=[(1-(1+0.0635/2)^(-2n))÷(0.0635/2)]

16×(0.0635÷2)=(1-(1+0.0635/2)^(-2n))

0.508=(1-(1+0.0635/2)^(-2n))

0.508−1=-(1+0.0635/2)^(-2n)

−0.492=-(1+0.0635/2)^(-2n)

0.492=(1+0.0635/2)^(-2n)

-2n=log(0.492)÷log(1+0.0635÷2)

N=-[log(0.492)÷log(1+0.0635÷2)]÷2

N=11.35 years
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QUESTION 1  

If a function is continuous at x=a, then \lim_{x \to a}f(x)=f(a)  

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QUESTION 2  

The correct answer is table 2. See attachment.


In this table the values of x approaches zero from both sides.


This can help us determine if the one sided limits are approaching the same value.

As we are getting closer and closer to zero from both sides, the function is approaching 2.


The values are also very close to zero unlike those in table 4.


The correct answer is B


QUESTION 3


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We cancel common factors to get,


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See attachment


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