Ponzi scheme is a fraudulent investment operation in which returns to investors are paid from funds collected from new investors rather than from profit earned by the operator. The scheme takes its name from the notorious operation of Charles Ponzi in 1920. The case of Bernie Madoff is a more recent example.† Suppose the operator of a Ponzi scheme pays an initial return to investors of $23,000. Each month, he must recruit enough new investors to increase the return by 6%. a)Find a formula that gives the return R, in dollars, that the operator must pay after t months. b) How much must the operator pay to investors at the end of 3 years? (Round your answer to two decimal places.) c) Assume that new investors pay $2000 to join the scheme. How many new investors must be recruited at the end of 3 years in order to pay the existing investors? (Enter a whole number of new investors.)
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
Speed, Time, and Distance
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Profit and Loss
The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
Units and Measurements
Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.
A Ponzi scheme is a fraudulent investment operation in which returns to investors are paid from funds collected from new investors rather than from profit earned by the operator. The scheme takes its name from the notorious operation of Charles Ponzi in 1920. The case of Bernie Madoff is a more recent example.† Suppose the operator of a Ponzi scheme pays an initial return to investors of $23,000. Each month, he must recruit enough new investors to increase the return by 6%.
a)Find a formula that gives the return R, in dollars, that the operator must pay after t months.
b) How much must the operator pay to investors at the end of 3 years? (Round your answer to two decimal places.)
c)
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