Answer: So if you want to find the total cost (c) for a certain number of months (m) and it costs $35 per month, you just need to multiply the number of months by the cost per month. So
35m=c
If you want to see the units cancel
($35/month)(months)=$
The months will cancel out, and you will be left with total dollars.
Not sure about the second part of your question, but if you wanted to figure out how much it would cost to be a member for 6 months, you would just plug in 6 for m.
35(6)=c
c=210
So $210
Step-by-step explanation:
I = p * r * n
i is the interest
p is the principal
r is the interest rate per time period
n is the number of time periods.
in your problem:
i = 900
p = 2000
r = what you want to find
n = 3 years
formula becomes 900 = 2000 * r * 3
solve for r to get r = 900 / 2000 / 3 = .15
that's .15 interest rate per year = 15% per year.
at a nominal interest rate of .15 per year, the interest rate per month would be .15/12 = .0125 per month.
the remaining balance at the end of 6 month is equal to 1907.140183
Answer:
What is it?
Step-by-step explanation:
Answer:
there is an economic principle that states that 1 dollar today is worth more than 1 dollar in the future, since an invested dollar could earn interests and gain value.
For example, we can assume a 6% interest rate (0.5% monthly interest rate), and using the present value formula we can determine the present value of $100:
- given to us in 30 days = $100 / (1 + 0.5%)¹ = $99.50
- given to us in 150 days = $100 / (1 + 0.5%)⁵ = $97.54
- given to us in 300 days = $100 / (1 + 0.5%)¹⁰ = $95.13
In order to calculate the value of $100 given to us tomorrow, we would need to determine a daily interest rate = 6% / 360 = 0.00017
- $100 given to us tomorrow = $100 / (1 + 0.00017)¹ = $99.98
since the amount of money is not that large and the interest rate is rather low, the difference in value is not that large. But imagine if you used a 24% interest rate instead of 6% (monthly interest rate = 2%)
- $100 given to us in 30 days = $100 / (1 + 2%)¹ = $98.04
- $100 given to us in 150 days = $100 / (1 + 2%)⁵ = $90.57
- $100 given to us in 300 days = $100 / (1 + 2%)¹⁰ = $82.03
as the interest rate increases, the present value decreases.
