Please help please please help please
1 answer:
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Answer:
First of all, this question is not complete. So, we will be hypothetically create two accounts and try to choose the one with the greater profit.
Choice 1 = X = Final Amount after 12 years = $5600
Choice 2 = Y = Final Amount after 12 years = $6285.50
Hence, Lorena should choose choice 2, as it gives more profit over than choice 1.
Step-by-step explanation:
First of all, this question is not complete. So, we will be hypothetically create two accounts and try to choose the one with the greater profit.
Initial Deposit Amount = $3500
Time period = 12 years
Let's Suppose Lorena has two X and Y choices of accounts at H-town Bank.
X = simple interest of 5% over the initial amount for 12 years.
Y = Compound interest 5% over the initial amount for 12 years.
Solution:
Let's calculate the profit for choice 1 = X
Simple interest = 5%
Initial amount = $3500
Time period = 12 years
Formula = A = P (1 + rt)
where, A = Final amount after 12 years
t = time period in years = 12
P = initial amount to be deposited = $3500
r = annual interest rate = 5%
Plug in the values to get the total amount.
A = 3500(1+0.05x12)
A = $5600 = final amount Lorena will get after 12 years.
Let's calculate the profit for choice 2 = Y
Compound interest = 5%
Initial amount = $3500
Time period = 12 years
Formula = A = P
where,
A = Final amount after 12 years
t = time period in years = 12
P = initial amount to be deposited = $3500
r = annual interest rate = 5%
n = number of times interest rate is applied or compounded. = 12
Plug in the values to get the total amount.
A = P
A = $6285.50
Hence, Lorena should choose choice 2, as it gives more profit over than choice 1.
Alright,
you will need to solve for each variable to find if they got the equation correctly or not..
Let's start with h
isolate h
(1/2)h = A/(b1+b2)
Now we need to get rid of 1/2 we may do so by multiplying both sides by 2
h = 2(A/(b1+b2))
And that's not how they did it for h so Option D doesn't apply
Let's see C
Also doesn't apply since they multiplied 2 only by A rather than A/h
Let's see B
Also not correct they made the same mistake as with option C
Let's see A
again same mistake
when multiplying both sides by 2
the 2 should be as following
I believe you should contact your instructor and explain that non of the options is right.
you will need to solve for each variable to find if they got the equation correctly or not..
Let's start with h
isolate h
(1/2)h = A/(b1+b2)
Now we need to get rid of 1/2 we may do so by multiplying both sides by 2
h = 2(A/(b1+b2))
And that's not how they did it for h so Option D doesn't apply
Let's see C
Also doesn't apply since they multiplied 2 only by A rather than A/h
Let's see B
Also not correct they made the same mistake as with option C
Let's see A
again same mistake
when multiplying both sides by 2
the 2 should be as following
I believe you should contact your instructor and explain that non of the options is right.