nukko2308
Answered

At Westonci.ca, we provide clear, reliable answers to all your questions. Join our vibrant community and get the solutions you need. Join our Q&A platform to connect with experts dedicated to providing precise answers to your questions in different areas. Get quick and reliable solutions to your questions from a community of experienced 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]

Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. We appreciate your time. Please come back anytime for the latest information and answers to your questions. We're dedicated to helping you find the answers you need at Westonci.ca. Don't hesitate to return for more.