Suppose you buy a CD for $200 that earns 3% APR and is compounded quarterly. The CD matures in 2 years. How much will this CD be
2 answers:
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To answer this question, we have the start-up costs of $ 52,000
A monthly inflation of $ 0 is assumed
Operating costs are $680
The daily gain is $960
For the Part A.
The inequality that this situation represents
So:
Where d represents the number of days.
For the Part B.
To start earning, you must replace all the initial investment and cover the expenses per day. The time that must pass for this to happen is obtained by clearing "d" from the inequality.
d> 185.71 days
Then, the sum of the net profits will be greater than the initial investment after 186 days of starting the business.
