It is called effective interest rate.
For example, you invest in a bond wich pays 5% annual interest rate and it compounds semiannually.
The first semester you win 2.5% over the capital invested and in the second semester you win 2.5% over the capital plus the interested earned in the first semester. Then the effecive interest rate is higher than 5%.
If we write the bigger number as x, and the smaller number as y, we can write it as simultaneous equations.
So, if the difference is 5, we can say that
x-y=5
And if five times the smaller number minus the greater number is 7, then we can write that as
5y-x=7
You can add these together to get 4y=12, and if we simplify, we get y=3.
We know that the difference is 5, so 3+5=8.
Therefore, Ethan's numbers are 3 and 8.
Answer:
x = 7/2 or 3.5
Step-by-step explanation:
-4p/-4 = -14/-4
p= 7/2
7/2 = 3.5
