The account is $4,480 after 3 years with a 4% investment
Answer:
Hmm
Step-by-step explanation:
The annual returns will be calculated as follows:
a] Here we use the formula:
A=p(1+r/100)^n
A=future amount
p=principle
r=returns
n=time
We are given:
A=500, p=400, t=1
Plugging the values in the formula we obtain:
500=400(1+r)^1
simplifying and solving for r:
1.25=1+r
thus
r=1.25-1
r=0.25~25%
b] Using the formula above:
A=p(1+r/100)^n
A=2500+100=2600, p=2000, n=1 year
plugging the values in the equation we obtain:
2600=2000(1+r)^1
simplifying and solving for r we obtain:
2600/2000=1+r
1.3=1+r
hence
r=1.3-1
r=0.3~30%
X1 = 0
X2 = 1
X3 = 7
I hope that helps!! :)
