What to the power of 3 is 1000

Mathematics

2 answers:

aev [14]3 years ago

8 0

.....the answer is 10

KengaRu [80]3 years ago

7 0

You mean which power with 3 will be 1000?

if so is 10 with the power of 3

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<u>The rate of return is 8.15%</u>

<u>This is a good investment</u>

<u></u>

Explanation:

For the first question, you need to find the rate that makes the present value of a stream of ten constant annual payments of $15,000 equal to the $100,000 investment.

The formula that returns the present value of a constant payment is called the annuity formula and is:

$Present\text{ }value=payment\times \bigg[\dfrac{1}{r}-\dfrac{1}{r(1+r)^t}\bigg]$

In your problem you know:

Present value: $100,000
payment: $15,000
r: ?
t: 10

You cannot solve for r directly. You must guess a value and calculate the right side of the equation until to you find the rate that makes it equal to 100,000.

Try 5%:

$\$15,000\times \bigg[\dfrac{1}{0.05}-\dfrac{1}{0.05(1+0.05)^{10}}\bigg]=\$115,826$