A pretzel stand at the state fair sells 3 pretzels for $6.75, 6 for $13.50,
2 answers:
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Jane must therefore deposit her savings in the four rivers bank.
<h3>What is compound interest?</h3>Interest that is added to a loan and deposit sum is known as compound interest. In our everyday lives, it is the notion that is employed the most frequently. Compound interest is calculated as a sum using the interest and principal accrued over time. Compound interest versus simple interest differ primarily in this way.
As per the data provided in the question,
Rate, r = 12%
After five years, the total amount, if Jane had saved at Mystic Bank,if Jane had saved at Mystic Bank would be:
For compounded quarterly,
n = 5 × 4
n = 20
A = 40000(1 + 12/(4 × 100))²⁰
A = 72244.44 (i)
If Jane placed her savings with the Four Rivers, then,
A = 40000(1 + 14/(2 × 100))¹⁰
A = 40000 × 1.9671
A = 78686.054 (ii)
Therefore, it is evident that case (ii) is higher than case (i). Jane must therefore deposit her savings in the four rivers bank.
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<u>Answer:</u>
Money earned by selling 175 magazine subscriptions will be 3176.25
<u>Solution: </u>
Given that you are planning to take a summer job selling magazine subscription.
For first subscription, magazine company will help you to pay $0.75
For each additional subscription sold, magazine company will pay you $0.20 more than what was paid for previous subscription.
So for second subscription, payments will be = 0.75 + 0.20 = 0.75 + 0.20 x 1
And for third subscription, payments will be = 0.75 + 0.20 = 0.75 + 0.20 x 2
Generalizing for nth subscription we get
Payments for nth subscription = 0.75 + 0.20(n-1)
so here we can see that arithmetic sequence is formed, having first term
and common difference = d = 0.20
We need to determine sum of above arithmetic sequence for n = 175
<u><em>Formula for sum of arithmetic sequence is as follows </em></u>
In our case n = 175, a = 0.75, d = 0.20
Hence money earn by selling 175 magazine subscriptions will be 3176.25