Problem
After five years of earning interest at an annual rate of 3%, an investment has earned $950 in interest. To the nearest whole dollar, determine the amount of the initial investment.
Result
The initial investment was $6,333.
Solution
P = I/ i · t
P = 950/ 0.03 · 5
P = 6,333.333
<span>4x + 8 = −2 − 2 + 5x
5x - 4x = 8 + 4
x = 12
There's only one solution, x = 12</span>
First, we convert the interest such that it is compounded annually. The formula would be:
ieff = (1 + i/m)^m - 1
where m = 4, since there are 4 quarters in a year
ieff = (1 + 0.025/4)^4 - 1
ieff = 0.0252
Then we use this for this equation:
F = P(1 + i)^n, where F is the future worth, P is the present worth and n is the number of years
F = $600(1 + 0.0252)^15
F = $871.53
Answer:
From the given, we establish this relationship:
RS + ST = RT
RS = ST since S is the midpoint of RT
Thus, let's use RS = ST to find x,
By substituting the given expressions:
RS = ST
8x + 11 = 14x - 1
12 = 6x
x = 12/6
thus,
x = 2
