What are the steps to solve 7÷2 1/3
1 answer:
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9514 1404 393
Answer:
Youngest to oldest:
- 160,406.86
- 246,805.83
- 293,230.01
- 348,386.58
- 451,170.72
Step-by-step explanation:
At 9% interest per year, the present value of 1 at age 20 is ...
p(a) = 1.09^(a-20)
Adding the present values for the different ages, we get a total of about 2.35528984846. Dividing the inheritance by that amount gives the multiplier for each of the present value numbers. The result is the list of shares shown above. At age 20, each brother will inherit about 636,864.29.
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<em>Additional comment</em>
This is the sort of question that suggests the use of a graphing calculator or spreadsheet for doing the tedious number crunching.
(We assume the bank <em>pays</em> 9% per year, rather than <em>charges</em> 9% per year.)
