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Zarrin [17]
3 years ago
13

When working with interest, how many decimal places should you have when working with money?

Mathematics
2 answers:
VikaD [51]3 years ago
5 0

Answer:

I'm pretty sure it's 4 decimal places but that's not one of your answers so I don't know.

Step-by-step explanation:

lana66690 [7]3 years ago
4 0

9514 1404 393

Answer:

  more significant figures than in the answer

  interest is reported to 2 decimal places when working with money

Step-by-step explanation:

Sums of money can involve large numbers of significant figures. A billion dollars, accurate to the penny, has 12 significant digits. Everyday finance may not involve billions of dollars, but measures of world economic activity may involve substantially more.

In general, if you want interest rate calculations accurate to the penny, the number of significant digits in the interest rate used must match or exceed the number of significant digits in the end result of the computation.

A million-dollar loan may have payments in the $10,000 range or higher, requiring 7 or 8 significant digits to express the payment value. Hence its computation should be made using interest rates accurate to 7 or 8 significant figures.

__

<u>Example</u>:

$1,800,000 loan for 15 years at 3.2% interest. The monthly payment is given by ...

  A = P(r/12)/(1 -(1 +r/12)^(-12t)) . . . for principal P at rate r for t years

The payment is expected to be in the $10,000 range, so will have 7 significant figures. If we round the monthly interest rate to 7 <em>decimal places</em>, we get ...

  A = 1.8×10^6(0.0026667)/(1 -(1.0026667^-180)) = 12,604.38

If we round the monthly interest rate to 8 <em>significant figures</em>, we get ...

  A = 1.8×10^6(0.0026666667)/(1 -(1.0026666667^-180)) = 12,604.34

Notice there is a difference in the last digit of the payment value. We should also note here that there was <em>no rounding at any point in the calculation until the final answer</em>.

__

Money amounts are generally rounded to the nearest penny <em>when reported on statements of account</em>. That is, interest amounts are rounded, and the account value is maintained to two decimal places. Because of this, payment-by-payment loan amortization schedules may differ from the calculated values arrived at using formulas such as the one above.

For tax purposes, the amount of tax due may be maintained to a number of decimal digits greater than those that appear on the pay stub. A pay-period tax due of 5.3333, for example, may be charged as 5.33 for two pay periods and 5.34 for the third pay period. The idea is to make the yearly total come out right. Usually, 4 or 5 decimal places will be sufficient for this purpose.

_____

The short answer is ...

  enough significant digits to ensure appropriate accuracy of the computed result

(for penny-accurate computations in the trillion-dollar range, 18 significant digits or more may be required.)

  interest will be reported to 2 decimal places when working with money

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Mr. Miller owns two hotels and is ordering towels for the rooms. He ordered 27 hand towels and 48 bath towels for a bill of $540
Temka [501]

This question is based on the concept of solving a two linear equation.

Thus, the cost of one bath towel is $9 and one hand towel is $4.

Given:

Number of  ordered of hand towels is 27 and bath towels is 48 and for a bill of $540 for the first hotel.

Number of  ordered of hand towels is 50 and bath towels is 24 and for a bill of $416 for the other hotel.

We need tom determined the cost of one hand towel and one bath towel.

According to the question:

Let the  hand towels be h  and bath towels be b.

Therefore, equation of first hotel is

27h + 48b = 540........(1)

Equation of second hotel is

50h + 24b = 416.........(2)

Now, solving both equation for h and b.

Equation (2) multiplying by -2.

-100 h -48 b = - 832..................(3)

Now, solve equation (1) and (3)

27h + 48b = 540  and -100h - 48b = - 832

⇒ -73 h = - 292

⇒ h = -292 / -73

⇒ h = 4

Therefore, the cost of 1 hand towel is $4.

Now, putting the value of h = 4 in equation (1).

⇒ 27(4) + 48b = 540

⇒ 108 + 48b = 540

⇒ 48b = 540 - 108

⇒ 48b = 432

⇒ b = 432/48

⇒ b = 9

Therefore, the cost of 1 bath towel is $9.

Thus, the cost of one bath towel is $9 and one hand towel is $4.

For more details, prefer this link:

brainly.com/question/11897796

4 0
2 years ago
Can someone do this for me were doing convert customary lenghts
omeli [17]
I could help if I had a picture of the problem
5 0
3 years ago
Let y- 2t+ 5 be a linear function representing the distance from home for an ant tminutes after starting out from a location nea
blondinia [14]

The 5 represents the starting distance from home. In other words, when t = 0, the value of y is y = 5. Replacing t with 0 leads to this y value. This is the y intercept. So at time 0 minutes, the ant is 5 units from home. Replace "units" with whatever units you happen to be using.

8 0
3 years ago
Write a expression to show 5 less than the sum of y and g
ddd [48]
Idk if this is correct but y+g>5 or 5<y+g
8 0
3 years ago
Lou has an account with $10,000 which pays 6% interest compounded annually. If to that account, Lou deposits $5,000 at the begin
katovenus [111]

Answer:

Option d. $22154 is the right answer.

Step-by-step explanation:

To solve this question we will use the formula A=P(1+\frac{r}{n})^{nt}

In this formula A = amount after time t

                        P = principal amount

                        r = rate of interest

                       n = number of times interest gets compounded in a year

                        t = time

Now Lou has principal amount on the starting of first year = 10000+5000 = $15000

So for one year A=15000(1+\frac{\frac{6}{100}}{1})^{1\times1}

= 15000(1+.06)^{1}

= 15000(1.06) = $15900

After one year Lou added $5000 in this amount and we have to calculate the final amount he got

Now principal amount becomes $15900 + $ 5000 = $20900

Then putting the values again in the formula

A=20900(1+\frac{\frac{6}{100}}{1})^{1\times1}

= 20900(1+.06)^{1}

= 20900(1.06)=22154

So the final amount will be $22154.

3 0
3 years ago
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