It's the type of financial calculations that includes the interest of previous periods into the new interests earned by some initial investment or principal P.

If we want to compute the final value FV of a series of n payments R at a fixed compound interest rate i, then

$FV=F_m\cdot R$

Where

$\displaystyle F_m=\frac{(1+i)^n-1}{i}$

The question provides us the following data

i=10% compounded twice a year

n=3 1/2 years

FV=15,000

We need to convert the number of periods and the interest rate to a semester base:

$\displaystyle i=\frac{10}{100\cdot 2}=0.05$

$n=3.5\cdot 2= 7\ semesters$

Let's calculate Fm

$\displaystyle F_m=\frac{(1+0.05)^7-1}{0.05}=8.142$

Knowing that

$FV=F_m\cdot R$

Solving for R

$\displaystyle R=\frac{FV}{F_m}=\frac{15,000}{8.142}=1,842.30$

Sara should deposit $1,842.30 twice a year to have the down payment for her own restaurant

3 0

4 years ago

Please help me with this math question

earnstyle [38]

80.64
because 16 times 12 is 192
if every tile is 2 feet divide 192 by 2
you should get 96 meaning there are 96 tiles
then take 96 and multiply by it by .84 because every tile is 84 cents
you then get 80.64

6 0

3 years ago