Orlando invests $1000 at 6% annual interest compounded daily and Bernadette invests $1000 at 7%
1 answer:
Answer:
6 Years
Step-by-step explanation:
Orlando invests $1000 at 6% annual interest compounded daily.
Orlando's investment =
Bernadette invests $1000 at 7% simple interest.
Bernadette's investment = A = 1000(1+0.07×t)
By trail and error method we will use t = 5
Bernadette's investment will be after 5 years
1000(1 + 0.07 × 5)
= 1000(1 + 0.35)
= 1000 × 1.35
= $1350
Orlando's investment after 5 years
=
=
= 1000(1.349826)
= 1349.825527 ≈ $1349.83
After 5 years Orlando's investment will not be more than Bernadette's.
Therefore, when we use t = 6
After 6 years Orlando's investment will be = $1433.29
and Bernadette's investment will be = $1420
So, after 6 whole years Orlando's investment will be worth more than Bernadette's investment.
You might be interested in
2 numbers can be represented by the variables x and y.
Set up a system of equations:
The two numbers added together will result in a sum of 33. However, one number subtracted from another will result in a difference of 1.
In both systems of equations, there are inverses of variable y. Therefore, we can combine the systems of equations by adding them together:
Divide both sides by 2 to get x by itself:
One of the numbers will be 17.
Plug the value into one of the equations:
Add y to both sides:
Subtract both sides by 1 to get y by itself:
The two numbers that sum up to 33, with a difference of 1 between them, will be 16 and 17.