Liberal Arts. The following graph represents the amount that Camila and Lydia charge for their babysitting services. Which of th
e following statements are true? Select all that apply.
2 answers:
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Answer:
According to the given data we have:
i = 0.092
167.5 = 10a5] at .092 + v^5{10[(1+k)/1.092].....for infinity}
After the 10a5] at .092 component gone from the problem, we have:
128.804 = 10[(1+k) +
v + (1+k)
.....for infinity}
You can turn this into a geometric progression by pulling out
10 * [(1+k)/1.092]...then your left with 1 + (1+k)/1.092 + (1+k)^2/1.092^2....for infinity.
Since the problem says k < .092.. you know that (1+k)/1.092 is eventually going to converge to 0.
Therefore, you'll have 1/(1-(1+k)/1.092) as your geometric sum.
That geometric sum * (10*v^6*(1+K)) then has to equal your constant, 128.804.
After dividing 128.804 by 10*v^6 you get 21.84.
21.84 = (1+k)*[1/(1-(1+k)/1.092)
Solving for (1+k), you get 1.04 so k = .04 or 4%