nukko2308
Answered

At Westonci.ca, we provide clear, reliable answers to all your questions. Join our vibrant community and get the solutions you need. Get immediate answers to your questions from a wide network of experienced professionals on our Q&A platform. Experience the convenience of finding accurate answers to your questions from knowledgeable experts on our platform.

6) Richard and David both invest $10 000. Richard invests his $10,000 at a rate of x% compound interest per year. David invests his $10,000 in a bank that pays 2% simple interest per year. After 7 years, their investment is worth the same amount. Calculate the value of x​

Sagot :

Refer to the attachment

View image Аноним

Answer:

[tex]{ \underline{ \mathfrak{ \: asnwer : }}}[/tex]

Richard's investment = David's investment

• From compound interest formula:

[tex]{ \boxed{ \bf{investment = p(1 + \frac{r}{100}) {}^{n} }}}[/tex]

  • P is the principle
  • r is the rate
  • n is the period

Therefore:

[tex]{ \rm{10000(1 + \frac{x}{100}) {}^{7} = 10000(1 + \frac{2}{100}) { }^{7} }} \\ \\ { \rm{1 + \frac{x}{100} = 1 + \frac{2}{100} }} \\ \\ { \rm{x = \frac{2 \times 100}{100} }} \\ \\ { \boxed{ \rm{ \: x = 2 \: }}}[/tex]

Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. Get the answers you need at Westonci.ca. Stay informed by returning for our latest expert advice.