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crimeas [40]
3 years ago
8

A man invests $2000 in an account that pays 6.5% interest per year, compounded quarterly.

Mathematics
1 answer:
skelet666 [1.2K]3 years ago
5 0

Answer:

The correct answer is a. $2275.28; b. 17.04 years

Step-by-step explanation:

Principal to be invested is $2000

Interest rate (r) per year is 6.5 quarterly.

Interest is calculated compoundly.

a. Time (t) for the investment is given to be 2 years.

Amount after two years is = Principal × ( 1+ \frac{r}{100n}) ^ {nt} where the value of n is 4.

⇒ A = 2000  × ( 1+ \frac{6.5}{400}) ^ {8}

⇒ A = $2275.28.

b. Now the value of A is given to be triple the principal = $ (3 × 2000).

Therefore we need to find the value of t.

⇒ 3 × 2000 =  2000  × ( 1+ \frac{6.5}{400}) ^ {4t}

⇒ ㏑ 3 = 4t × ㏑ ( 1.01625)

⇒ t = 17.04

Therefore it would take 17.04 years for the principal to triple.

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Step-by-step explanation:

Example 1

Solve the equation x3 − 3x2 – 2x + 4 = 0

We put the numbers that are factors of 4 into the equation to see if any of them are correct.

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Example 2

We can easily use the same method to solve a fourth degree equation or equations of a still higher degree. Solve the equation f(x) = x4 − x3 − 5x2 + 3x + 2 = 0.

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