Micah needs $18,500 to purchase a boat. How much money will he need to invest today in a savings account earning 3.2% interest,
1 answer:
We have that every quarter, he will get an 0.8% interest rate. We also have that there will be 14*4=56 periods of repayment. We have that by the formula, if there are n periods and x% is the interest rate, the capital is multiplied by (100+x%)^n.
Suppose Micah invests x money. Then, we have that after 14 years, the capital available will be C=
. We have that C=18500$ and hence that 18500=x*1.562. Thus, solving for x we have that x=11841$.
Micah will need to invest only 11841$ in order to pay for his boat; this shows the importance of saving since he earns a lot of money, around 7k $.
Suppose Micah invests x money. Then, we have that after 14 years, the capital available will be C=
Micah will need to invest only 11841$ in order to pay for his boat; this shows the importance of saving since he earns a lot of money, around 7k $.
You might be interested in
as you notice, the first term from the binomial, starts off with a highest exponent of 10, and then gradually goes down by 1 on every element.
the second term of the binomial, starts off with an exponent of 0, and goes up by 1 on every element.
now, to get the coefficient
the first coefficient is 1 and the second is the same as the binomial's exponent... those two are simple.... now, to get any subsequent one, we simply "get the product of the current coefficient and the exponent of the first term, and divide it by the exponent of the second term on the next element".
for example... how do we get 10 for the second element, basically 1 * 10/1
that one is simple
now how do we get say, 45 for the 3rd element?
10 * 9 / 2
how do we get 252 for the 6th element?
210 * 6 / 5
and so on, and from there, you can expand each element.