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2 years ago

(i) Find i in terms of P and A.

Mathematics

1 answer:

Ilia_Sergeevich [38]2 years ago

3 0

Answer:

See below

Step-by-step explanation:

Given formula:

$A=P(1+i/100)^3$

(i)

Solve for i:

$A/P=(1+i/100)^3$
$\sqrt[3]{A/P}=1+i/100$
$\sqrt[3]{A/P} -1=i/100$
$i=100(\sqrt[3]{A/P} -1)$

(ii)

P = 2500, A = 2650, find i:

$i =100(\sqrt[3]{2650/2500} -1)$
i ≈ 2.0%

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