Show work please! this is due tmr
2 answers:
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To answer this question we will use the following formula for compounded monthly interest:
where A₀ is the initial amount, r is the annual interest as a decimal number and 12 is the number of years.
Notice that:
Therefore, substituting t=42, r=0.02, and A₀=120000 we get:
Simplifying the above result we get:
Answer: $277,769.75.
Answer:
The least attractive offer is the fourth case a starting salary of $105,000 with a 4% increase each year
Step-by-step explanation:
I attach the full question below
This question can be modeled as a geometric sequence over seven years
Formula
and the general formula will be:
R = k[(1+i)^n - 1]/i
Where
i represents the increase in percentage annualy,
n the number of years
k the initial amount at the start of the period
First case
(125,000)(1.02^7 - 1)/0.02 = $929,285.4
Second case
(110,000)(1.03^7 - 1)/0.03 = $842,870.8
Third case
(98,000)(1.08^7 - 1)/0.08 = $874,434.7
Fourth case
(105,000)(1.04^7 - 1)/0.04 = $829,320.9
The least attractive offer is the fourth case a starting salary of $105,000 with a 4% increase each year
