After school Philippe spent 1 3/4 hours at baseball practice, 2 1/4 hours on homework, and 1/4 hour getting ready for bed. About
1 answer:
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Answer:
1. 10.7 years
2. 17.0 years
3. 2nd option
Step-by-step explanation:
Use formula for compounded interest
where
A is final value, P is initial value, r is interest rate (as decimal), n is number of periods and t is number of years.
In your case,
1. P=$5745, A=2P=$11490, n=12 (compounded monthly), r=0.065 (6.5%) and t is unknown. Then
2. P=$5745, A=3P=$17235, n=12 (compounded monthly), r=0.065 (6.5%) and t is unknown. Then
3. <u>1 choice:</u> P=$5745, n=12 (compounded monthly), r=0.065 (6.5%), t=5 years and A is unknown. Then
<u>2 choice:</u> P=$5745, n=4 (compounded monthly), r=0.0675 (6.75%), t=5 years and A is unknown. Then
The best will be 2nd option, because $8032.58>$7936.39
Answer:
It will take about 35.439 years to triple.
Step-by-step explanation:
Recall the formula for continuously compounded interest:
where "A" is the total (accrued or future) accumulated value, "r" is the rate (in our case 0.031 which is the decimal form of 3.1%), "P" is the principal, and "t" is the time in years (our unknown).
Notice also that even that the final amount we want to get is three times $48,000. So our formula becomes:
Now,in order to solve for "t" (which is in the exponent, we use logarithms: