Step-by-step explanation:
Step 1: Multiply the whole number part (1) by the denominator (8).
1 × 8 = 8
Step 2: Add the product from Step 1 (8) to the numerator (4).
8 + 4 = 12
Step 3: Write that result (12) above the denominator. So,
Step 4: The fraction
Can be reduced by dividing both numerator and denominator by the GCD(12,8) = 4. Thus,
Answer:
After 11 years the value of the investment reaches $1500.00
.
Step-by-step explanation:
The formula used for finding time (when the value reaches certain amount) is:
where A= Future VAlue
P= Principal Value
r= rate of interest (in decimal)
n= no of times investment is compounded
t= time
Putting the values given and finding Time t,
A= $1500
P= $1200
r= 2% or 0.02
n= 4 (compound quarterly)
Dividing both sides by 1200 and solving 0.02/4 = 0.005
Since t is in power we take the logarithm ln on both sides.
The rule of logarithm says that the exponent can be multiplied with the base when taking log