Answered

At Westonci.ca, we connect you with the best answers from a community of experienced and knowledgeable individuals. Experience the ease of finding reliable answers to your questions from a vast community of knowledgeable experts. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.

I have this practice question from my ACT prep guide, THE SUBJECT IS PRE CALC!! MEANING ITS HARD AND COMPLEX. Below will be the questions to this problem ( includes 5 questions )1. What is the balance of Albert’s $2000 after 10 years? 2. What is the balance of Marie’s $2000 after 10 years? 3. What is the balance of Han’s $2000 after 10 years?4. What is the balance of Max’s $2000 after 10 years? And lastly, 5. Who is $10,000 richer at the end of the competition?

I Have This Practice Question From My ACT Prep Guide THE SUBJECT IS PRE CALC MEANING ITS HARD AND COMPLEX Below Will Be The Questions To This Problem Includes 5 class=

Sagot :

Albert

Compound interest formula:

[tex]A=P(1+\frac{r}{n})^{nt}[/tex]

where:

A: final amount

P: principal

r: annual interest rate, as a decimal

t: time in years

n: number of times interest applied per year

Substituting with P = $1000, r = 0.012 (= 1.2/100), n = 12 (interest is compounded monthly), t = 10 years, we get:

[tex]\begin{gathered} A=1000(1+\frac{0.012}{12})^{12\cdot10} \\ A=1000(1.001)^{120} \\ A=1127.43\text{ \$} \end{gathered}[/tex]

If $500 lost 2%, then it keeps 98% of its original value, that is,

$500x98% = $490

Continuous compound formula:

[tex]A=Pe^{rt}[/tex]

where the variables have the same meaning as before.

Substituting with P = $500, r = 0.008 ( = 0.8/100), and t = 10 years, we get:

[tex]\begin{gathered} A=500\cdot e^{0.008\cdot10} \\ A=541.64\text{ \$} \end{gathered}[/tex]

The balance of Albert’s $2000 after 10 years is:

$1127.43 + $490 + $541.64 = $2159.07

Marie

Substituting in the compound interest formula with P = $1500, r = 0.014 (= 1.4/100), n = 4 (interest is compounded quartely), t = 10 years, we get:

Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. Westonci.ca is here to provide the answers you seek. Return often for more expert solutions.