Is it christmas yet?
1 answer:
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Answer:
After 7.04 years the amount will reach $57,000 or more
Step-by-step explanation:
The rule of the compound interest is , where
- A is the new value
- P is the initial value
- r is the rate in decimal
- n is the period of the time
- t is the time
∵ A loan of $36,000 is made at 6.75% interest, compounded annually
∴ P = 36,000
∴ r = 6.75% = 6.75 ÷ 100 = 0.0675
∴ n = 1 ⇒ compounded annually
∵ The amount after t years will reach $57,000 or more
∴ A = 57,000
→ To find t substitute these values in the rule above
∵ 57,000 = 36,000
∴ 57,000 = 36,000
→ Divide both sides by 36,000
∵ =
→ Insert ㏒ in both sides
∴ ㏒( ) = ㏒
→ Remember ㏒ = n ㏒(
)
∵ ㏒( ) = <em>t</em> ㏒(1.0675)
→ Divide both sides by ㏒(1.0675)
∴ 7.035151337 = <em>t</em>
<em>∴ </em><em>t </em>≅ 7.04
∴ After 7.04 years the amount will reach $57,000 or more
Looking at the image attached, we can see the assumed sales of the Chewy Candy Company for its new candy bar in Manila and Seoul. Setting up the given condition for separate branches, we clearly see that during the 6th month, the total sales in Manila first exceeded the cumulative total sales in Seoul.
