Albert $1000 earned 1.2% annual interest compounded monthly
1 answer:
Answer:
$2159.07
Step-by-step explanation:
The compound interest formula is used to find the balance for the $1000 investment:
A = P(1 +r/n)^(nt)
A = 1000(1 +.012/12)^(12·10) = 1000·1.001^120 ≈ 1127.43
__
For a 2% loss, the multiplier of the investment value is 1-.02 = 0.98. The value of the first $500 investment is ...
A = 500(1 -.02) = 490.00
__
The continuous compounding formula is used for the second $500 investment.
A = Pe^(rt)
A = 500e^(.008·10) = 500e^.08 = 541.64
__
The total value of Albert's investments is ...
$1127.43 +490 +541.64 = $2159.07
You might be interested in
Answer:
Step-by-step explanation: 11/12 - 3/8
1. First, we will find a common denomenator. It needs to be the least common factor, or the answer will not be in its simplist form. Let's take a look at the multiples of 12 and 8.
12: 12, 24, 36, 48, 60, 72, 84, 96
8: 8, 16, 24, 32, 40, 48, 56, 64, 72
2. Next, we will choose the smallest common multiple. That would be 24.
3. Now, we will work this out.
11/12 = 22/24
3/8 = 9/24
4. Subtract.
22/24 - 9/24
= 13/24
=
I found the denomenators by multiplying.
Hope this answer helped!