Concept explainers
a.
To solve.
a.
Answer to Problem 2P
$107.2
Explanation of Solution
Given information:
One hundred dollars is invested at 7.2% interest compounded annually. We have to determine worth after 1 year.
We shall use the formula for compound interest.
Where A is the amount and P is principal and ris rate compounded n times.
Worth after 1 year is,
b.
To solve.
b.
Answer to Problem 2P
$141.57
Explanation of Solution
Given information:
One hundred dollars is invested at 7.2% interest compounded annually. We have to determine worth after 5 year.
We shall use the formula for compound interest.
Where A is the amount and P is principal and ris rate compounded n times.
Worth after 5 year is,
c.
To solve.
c.
Answer to Problem 2P
$200.42
Explanation of Solution
Given information:
One hundred dollars is invested at 7.2% interest compounded annually. We have to determine worth after 10 year.
We shall use the formula for compound interest.
Where A is the amount and P is principal and ris rate compounded n times.
Worth after 10 year is,
d.
To solve.
d.
Answer to Problem 2P
$401.70
Explanation of Solution
Given information:
one hundred dollars is invested at 7.2% interest compounded annually. Wehave to determine worth after 20 year.
We shall use the formula for compound interest.
Where A is the amount and P is principal and ris rate compounded n times.
Worth after 20 year is,
e.
Using the answers from above parts we have to estimate doubling time for the investment.
e.
Answer to Problem 2P
Doubling time is 10 years on a rate of 7.2% compounded annually.
Explanation of Solution
Doubling rate is given by formula,
Where
We have to solve for
Now we put
Hence we get,
Sometimes this is directly used to calculate the doubling time when the interest is compounded annually. (Called rule of 72)
Hence doubling time is
Chapter 10 Solutions
Algebra and Trigonometry: Structure and Method, Book 2
Additional Math Textbook Solutions
Intermediate Algebra (7th Edition)
Differential Equations and Linear Algebra (4th Edition)
College Algebra with Modeling & Visualization (6th Edition)
College Algebra in Context with Applications for the Managerial, Life, and Social Sciences (5th Edition)
Elementary Algebra: Concepts and Applications (10th Edition)
- Algebra and Trigonometry (6th Edition)AlgebraISBN:9780134463216Author:Robert F. BlitzerPublisher:PEARSONContemporary Abstract AlgebraAlgebraISBN:9781305657960Author:Joseph GallianPublisher:Cengage LearningLinear Algebra: A Modern IntroductionAlgebraISBN:9781285463247Author:David PoolePublisher:Cengage Learning
- Algebra And Trigonometry (11th Edition)AlgebraISBN:9780135163078Author:Michael SullivanPublisher:PEARSONIntroduction to Linear Algebra, Fifth EditionAlgebraISBN:9780980232776Author:Gilbert StrangPublisher:Wellesley-Cambridge PressCollege Algebra (Collegiate Math)AlgebraISBN:9780077836344Author:Julie Miller, Donna GerkenPublisher:McGraw-Hill Education