All categories

3 years ago

What's the present value of $11,000 discounted back 5 years if the appropriate interest rate is 4.5%, compounded semiannually?

Mathematics

1 answer:

kotegsom [21]3 years ago

7 0

Answer:

Step-by-step explanation:

A = P[1 + (r/n)]^(nt)

Look the formula up online to find out what each variable represents if needed.

We are solving for P, which is the principal amount 5 years back.

Substitute 11,000 for A (total amount), 4.5% for r(rate), 2 for n(number of times -- in this case, semiannually), and 5 for t(time -- 5 years).

11000 = P[1+(0.045/2)]^(2x5)

11000 = P (1.0225)^10

11000 = P (1.2492) approx.

Divide both sides by 1.2492 to find P.

P = $8805.64 (approx)

I know that the answer I got is not an option listed. However, I feel that my workings may help other people to answer this question or give them inspiration to answer similar questions. Therefore, I will leave this answer up.

Thanks, and sorry I couldn't do much.

You might be interested in

Given that p=9i+12j and q=-6i-8j. Evaluate |p-q|-{|p|-|q|}

krok68 [10]

Answer:

$|p-q|-(|p|-|q|) = 20$

Step-by-step explanation:

First let's find the value of 'p-q':

$p - q = 9i + 12j - (-6i - 8j)\\p - q = 9i + 12j + 6i + 8j\\p - q = 15i + 20j\\$

To find |p-q| (module of 'p-q'), we can use the formula:

$|ai + bj| = \sqrt{a^{2}+b^{2}}$

Where 'a' is the coefficient of 'i' and 'b' is the coefficient of 'j'

So we have:

$|p - q| = |15i + 20j| = \sqrt{15^{2}+20^{2}} = 25$

Now, we need to find the module of p and the module of q: $|p| = |9i + 12j| = \sqrt{9^{2}+12^{2}} = 15$

$|q| = |-6i - 8j| = \sqrt{(-6)^{2}+(-8)^{2}} = 10$

Then, evaluating |p-q|-{|p|-|q|}, we have:

$|p-q|-(|p|-|q|) = 25 - (15 - 10) = 25 - 5 = 20$

7 0

3 years ago

A truck that can carry no more than 7100 lb is being used to transport refrigerators and upright pianos. Each refrigerator weigh

pishuonlain [190]

Let x be the number of refrigerators

Y be the number of pianos

So the inequality:

300x + 475y < 7100

So substitute 12 and 8 to the inequality

300(12) + 475(8) < 7100

3600 + 3800 < 7100

7400 < 7100 is not true

So it will overload the truck

6 0

3 years ago

Find the selling price of a $249.50 cell phone with a 30% markup

algol [13]

Answer:

$324.35

Step-by-step explanation:

249.50x74.80=74.85. markup=add, 74.85+249.50=324.35

3 0

3 years ago

Louiza changes £320 into Euros. £1 is Worth 1.14 euros. How many euros does she receive?

Goshia [24]

Answer:

she received 364.80 euros

Step-by-step explanation:

4 0

3 years ago

To wash a window that is 8 meters off the ground, Stanley leans a latter against the side of the building The base of the latter

diamong [38]

Answer:

the latter is ten meters long

Step-by-step explanation:

its just ten meters long

3 0

3 years ago