FUTURE VALUE = PRESENT VALUE * (1 + r)^t
PV = 220,000
r = 3%
t = 7 years
FV = 220,000 * (1 + 3%)^7
FV = 220,000 * (1.03)^7
FV = 220,000 * 1.22987386542487
FV = 270,572.25
Answer:
They lose about 2.79% in purchasing power.
Step-by-step explanation:
Whenever you're dealing with purchasing power and inflation, you need to carefully define what the reference is for any changes you might be talking about. Here, we take <em>purchasing power at the beginning of the year</em> as the reference. Since we don't know when the 6% year occurred relative to the year in which the saving balance was $200,000, we choose to deal primarily with percentages, rather than dollar amounts.
Each day, the account value is multiplied by (1 + 0.03/365), so at the end of the year the value is multiplied by about
... (1 +0.03/365)^365 ≈ 1.03045326
Something that had a cost of 1 at the beginning of the year will have a cost of 1.06 at the end of the year. A savings account value of 1 at the beginning of the year would purchase one whole item. At the end of the year, the value of the savings account will purchase ...
... 1.03045326 / 1.06 ≈ 0.9721 . . . items
That is, the loss of purchasing power is about ...
... 1 - 0.9721 = 2.79%
_____
If the account value is $200,000 at the beginning of the year in question, then the purchasing power <em>normalized to what it was at the beginning of the year</em> is now $194,425.14, about $5,574.85 less.
Answer:
x = 3/2
Step-by-step explanation:
Solve for x over the real numbers:
(5 x^2 - 4 x + 6) (3 - 2 x) = 0
Split into two equations:
3 - 2 x = 0 or 5 x^2 - 4 x + 6 = 0
Multiply both sides by -1:
2 x - 3 = 0 or 5 x^2 - 4 x + 6 = 0
Add 3 to both sides:
2 x = 3 or 5 x^2 - 4 x + 6 = 0
Divide both sides by 2:
x = 3/2 or 5 x^2 - 4 x + 6 = 0
Divide both sides by 5:
x = 3/2 or x^2 - (4 x)/5 + 6/5 = 0
Subtract 6/5 from both sides:
x = 3/2 or x^2 - (4 x)/5 = -6/5
Add 4/25 to both sides:
x = 3/2 or x^2 - (4 x)/5 + 4/25 = -26/25
Write the left hand side as a square:
x = 3/2 or (x - 2/5)^2 = -26/25
(x - 2/5)^2 = -26/25 has no solution since for all x on the real line, (x - 2/5)^2 >=0 and -26/25<0:
Answer: x = 3/2
<span>The Ben's family drove cross country on a 4,615.8 mile trip in 49 days. Long does it take for them to complete the trip
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