Homework Help is Here – Start Your Trial Now!
Math
Algebra
The function that models the amount of money C that is obtained by investing P money at an annual rate r after t years, which has n annual capitalizations, is  C(t)=P(1+r/n)nt If we want to make a continuous capitalization, i.e., n tends to ∞, we will assume that m = n/r , the formula would be C(t) = P(1+1/mr)rmt . Simplifying we obtain C(t) = P[ (1+1/m)m ]rt A company requires an investment that will allow it to have 20 million pesos in 5 years. If it invests in a financial institution that offers a monthly interest rate of 1%, what is the minimum investment it should make? interest of 1% per month, what is the minimum investment it must make?

The function that models the amount of money C that is obtained by investing P money at an annual rate r after t years, which has n annual capitalizations, is  C(t)=P(1+r/n)nt If we want to make a continuous capitalization, i.e., n tends to ∞, we will assume that m = n/r , the formula would be C(t) = P(1+1/mr)rmt . Simplifying we obtain C(t) = P[ (1+1/m)m ]rt A company requires an investment that will allow it to have 20 million pesos in 5 years. If it invests in a financial institution that offers a monthly interest rate of 1%, what is the minimum investment it should make? interest of 1% per month, what is the minimum investment it must make?

Algebra and Trigonometry (6th Edition)
Algebra and Trigonometry (6th Edition)
6th Edition
ISBN:9780134463216
Author:Robert F. Blitzer
Publisher:Robert F. Blitzer
ChapterP: Prerequisites: Fundamental Concepts Of Algebra
Section: Chapter Questions
Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...
See similar textbooks
icon
Related questions
Question

The function that models the amount of money C that is obtained by investing P money at an annual rate r after t years, which has n annual capitalizations, is 

C(t)=P(1+r/n)nt

If we want to make a continuous capitalization, i.e., n tends to ∞, we will assume that m = n/r , the formula would be C(t) = P(1+1/mr)rmt . Simplifying we obtain C(t) = P[ (1+1/m)m ]rt

A company requires an investment that will allow it to have 20 million pesos in 5 years. If it invests in a financial institution that offers a monthly interest rate of 1%, what is the minimum investment it should make? interest of 1% per month, what is the minimum investment it must make?

Expert Solution
steps

Step by step

Solved in 3 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
Algebra and Trigonometry (6th Edition)
Algebra and Trigonometry (6th Edition)
Algebra
ISBN:
9780134463216
Author:
Robert F. Blitzer
Publisher:
PEARSON
Contemporary Abstract Algebra
Contemporary Abstract Algebra
Algebra
ISBN:
9781305657960
Author:
Joseph Gallian
Publisher:
Cengage Learning
Linear Algebra: A Modern Introduction
Linear Algebra: A Modern Introduction
Algebra
ISBN:
9781285463247
Author:
David Poole
Publisher:
Cengage Learning
Algebra And Trigonometry (11th Edition)
Algebra And Trigonometry (11th Edition)
Algebra
ISBN:
9780135163078
Author:
Michael Sullivan
Publisher:
PEARSON
Introduction to Linear Algebra, Fifth Edition
Introduction to Linear Algebra, Fifth Edition
Algebra
ISBN:
9780980232776
Author:
Gilbert Strang
Publisher:
Wellesley-Cambridge Press
College Algebra (Collegiate Math)
College Algebra (Collegiate Math)
Algebra
ISBN:
9780077836344
Author:
Julie Miller, Donna Gerken
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS