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Ulleksa [173]
3 years ago
15

You are planning a day of shopping. You will visit the following six ​stores: Meijer comma JCPenney comma Lowes comma Follett's

comma Costco comma and Kohl's. Since Costco and Lowes are right next to each​ other, you will definitely visit these two stores consecutively. How many different itineraries can you plan for your​ day?
Mathematics
1 answer:
SIZIF [17.4K]3 years ago
5 0

Answer: 240

Explanation:

Planning an itinerary is the same as choosing an order in which you will visit the shops. To count all the possible orders, we use the multiplication principle.

There are 6 different shops, but we can think of Costco and Lowes as being the same place on the itinerary because they are always visited together. However, given that the order matters, there are 2 possibilities: visiting Costco first and then Lowes, or visiting Lowes first and Costco second.

Now, there are 5 choices for the first place. The second place can't be the same as the first one, so there are 4 choices for it. The third place must be different from the previous two, so there are 3 choices for it. Similarly, there are 2 choices for the fourth place and 1 choice for the last place, so using the multiplication principle there are 5\cdot 4\cdot 3 \cdot 2\cdot 1 ways to visit these places.

Finally, to create an itinerary, we must take into account the order between Costco and Lowes and the order of the 5 places, so by the multiplication principle there are 2\cdot 5\cdot 4\cdot 3 \cdot 2\cdot 1=240  itineraries.

Keywords: multiplication principle

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To answer this question, we can assume some different possibilities for the answer, since it is incomplete (or with not clear options):

a. \\ \frac{PMT}{r}

b. \\ PMT*\frac{(1+r)^{n}-1}{r}*(1 + r)

c. \\ PMT*\frac{(1+r)^{n} - 1}{r}  

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a. \\ PV_{perpetuity}=\frac{PMT}{r}

Step-by-step explanation:

The present value of a <em>perpetuity</em> is an <em>amount of money needed to invest today</em> to have a perpetuity, or an annuity paid for life, considering an interest rate of <em>r</em>.

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In general, the present value can be mathematically defined as:

\\ PV(r) = \frac{PMT_{0}}{(1+r)^{0}} + \frac{PMT_{1}}{(1+r)^{1}} + \frac{PMT_{2}}{(1+r)^{2}}+\dotsc+\frac{PMT_{n}}{(1+r)^{n}}

Where <em>n</em> represents the number of periods for the investment.

On the other hand, an annuity, given a present value <em>PV</em>, is defined by:

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Solving this equation for <em>PV</em> (present value) to define the present value of an annuity, we have:

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But the question is asking for an annuity paid for life (theoretically, for infinite periods of time); then, if we calculate the <em>limit</em> for the previous equation when <em>n</em> tends to <em>infinity</em>, we find that:

\\ lim_{n\to\infty} \frac{(1+r)^{n}-1}{(r*(1+r)^{n})}*PMT

\\ (lim_{n\to\infty} \frac{(1+r)^{n}}{r*(1+r)^{n}} - lim_{n\to\infty} \frac{1}{r*(1+r)^{n}})*PMT

\\ (lim_{n\to\infty} \frac{(1+r)^{n}}{(1+r)^{n}}*\frac{1}{r} - lim_{n\to\infty} \frac{1}{r*(1+r)^{n}})*PMT

\\ (lim_{n\to\infty} 1*\frac{1}{r} - lim_{n\to\infty} \frac{1}{r*(1+r)^{n}})*PMT

The second term of the previous expression tends to 0 (zero) when <em>n</em> tends to <em>infinity</em>, then:

\\ (lim_{n\to\infty} 1*\frac{1}{r})*PMT

\\ (1*\frac{1}{r})*PMT

\\ \frac{PMT}{r} or

\\ PV_{perpetuity}=\frac{PMT}{r}

This expression represents that, with an interest of <em>r</em>, if we make an investment of PMT today, then we will have an annuity of \\ \frac{PMT}{r} for life, because in each period PMT would be the same again due to the interest rate (r).

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