Start from
It may be useful to multiply the whole expression by 2, in order to get rid of denominators:
Distribute the negative sign in the left hand side:
Move all terms involving x to the left, and all constants to the right:
Sum like terms:
DIvide both sides -5:
The answer is 18 beacause 6+6+2+4=18
Solving for the amount of maturity given that it is compounded monthly for 1 year with an interest of 3%, we have the formula and solution below:
A = P (1+r/n)^rn
A = $5,000 (1.040417)
A =$5202.085
For compounded daily, we have the solution below:
A = $5,000 (1.040443)
A = $5202.215
The difference in amount is shown below:
Difference = $5202.215 - $5202.085
Difference = $0.13
He should buy two 5 pound bags and one 2 pound bag.
