Edgar accumulated $5,000 in credit card debt. If the interest rate is 10% per year and he does not make any payments for 3 years, how much will he owe on this debt in 3 years by compounding continuously?

Answers

Answer 1

the discrete compounding formula is f = p * (1 + r) ^ n

f is the future value

p is the present value

r is the interest rate per time period

n is then number of time periods

in your problem, you are given:

f = what you want to find

p = 5000

r = 30% per year / 100 = .3 per year (percent / 100 = rate).

n = 3 years

if you compound annually, the formula becomes:

f = 5000 * (1 + .3) ^ 3 = 10985

if you compound quarterly, the formula becomes:

f = 5000 * (1 + .3 / 4) ^ (3 * 4) = 11908.898

if you compound monthly, the formula becomes:

f = 5000 * (1 + .3 / 12) ^ (3 * 12) = 12162.67658

if you compound continuously, a different formula is used.

that formula is f = p * e ^ (r * n)

f is the future value

p is the present value

e is the scientific constant of 2.718281828.......

r is the interest rate per time period

n is the number of time periods.

with this formula, you leave the time periods in terms of years.

it will make no difference what time periods and compounding periods you use, the answer will be the same.

most of the time you will just give it the interest rate per year and the number of years.

the reason is as follows:

r * n = .3 * 3 = .9 when giving it rate and time in terms of years.

r * n = .3 / 4 * 3 * 4 = .9 when giving it rate and time in terms of quarters.

r * n = .3 / 12 * 3 * 12 = .9 when giving it rate and time in terms of months.

in your problem, the formula becomes f = 5000 * e ^ (.3 * 3) = 12298.01556.

the more compounding periods per year, the higher the future value.

the highest is when you compound continuously.

this is apparent from the data.


Related Questions


In the equation 11 - 4(x +4) = 6x, the first step is to simplify 11 - 4.
True
False

Answers

Answer:

False

Step-by-step explanation:

You first need to distribute the -4 to (x+4).

Solve the following equation for x. 12^2 - 36x = 0

Answers

The answer is that X is equal to 4

A service station has both self-service and full-service islands. On each island, there is a single regular unleaded pump with two hoses. Let X denote the number of hoses being used on the self-service island at a particular time, and let Y denote the number of hoses on the full-service island in use at that time. The joint pmf of X and Y appears in the accompanying tabulation. y p(x, y) 0 1 2 x 0 0.10 0.03 0.02 1 0.06 0.20 0.07 2 0.05 0.14 0.33 (a) What is P(X

Answers

Answer:

[tex]P(x = 1) = 0.33[/tex]

[tex]P(y = 2) = 0.42[/tex]

Step-by-step explanation:

Given

                    y

x [tex]\begin{array}{cccc}P(x,y) & {0} & {1} & {2} & {0} & {0.10} & {0.03} & {0.02} & {1} & {0.06} & {0.20} & {0.07} & {2} & {0.05} & {0.14} & {0.33}\ \end{array}[/tex]

Solving (a)

[tex]P(x = 1)[/tex]

To do this, we simply add all data where x = 1

So, we have:

[tex]P(x = 1) = P(x=1|y=0) + P(x=1|y=1) + P(x=1|y=2)[/tex]

[tex]P(x = 1) = 0.06 + 0.20 + 0.07[/tex]

[tex]P(x = 1) = 0.33[/tex]

Solving (b)

[tex]P(y = 2)[/tex]

To do this, we simply add all data where y = 2

So, we have:

[tex]P(y = 2) = P(x=0|y=2) + P(x=1|y=2) + P(x=2|y=2)[/tex]

[tex]P(y = 2) = 0.02 + 0.07 + 0.33[/tex]

[tex]P(y = 2) = 0.42[/tex]

. Two mutually exclusive projects have projected cash flows as follows:
YEAR PROJECT A PROJECT B
0 Ksh. -2m Ksh. -2m
1 1m 0
2 1m 0
3 1m 0
4 1m 6m





Required:
a) Determine the internal rate of return for each project. [2 Marks]

b) Determine the net present value for each project at discount rates of 0, 5,10,20,30, and 35 percent. [2 Marks]

c) Plot a graph of the net present value of each project at the different discount rates. [2 Marks]

d) Which project would you choose? Why? [ 2 Marks]

e) What is each project’s MIRR if the cost of capital is 12 percent?

Answers

Answer:

yes

Step-by-step explanation:

Do the two trapezoids in the figure appear to be similar? Why or why not?
options:

A)

They're not similar because only one pair of corresponding angles in the two trapezoids is congruent.

B)

They're similar because two pairs of corresponding angles in the two trapezoids are congruent.

C)

They're similar because one pair of corresponding angles in the two trapezoids is congruent.

D)

They're not similar because two pairs of corresponding angles in the two trapezoids are congruent.

Answers

Answer:

Option B,

They're similar because two pairs of corresponding angles in the two trapezoids are congruent

Answer:

They're not similar because only one pair of corresponding angles in the two trapezoids is congruent.

Step-by-step explanation:

What is the greatest common factor of 10 and 13?
ANSWER IN LESS THEN 3 MINS AND I'LL GIVE BRAINLIEST

Answers

Answer:

the answer for this would be 1

show that the line x-y+2=0 and the line joining the points (4,6) and (10,12) are parallel to each other

Answers

x-y+2=0

-y= -x-2

y=x+2

In order for the other line to be parallel, the slope has to be the same.

(12-6)/(10-4)= 6/6= 1

Both slopes are the same, meaning it is parallel.

An operation manager at an electronics company wants to test their amplifiers. The design engineer claims they have a mean output of 331331 watts with a variance of 144144. What is the probability that the mean amplifier output would be greater than 332.8332.8 watts in a sample of 4949 amplifiers if the claim is true

Answers

Answer: brother

Step-by-step explanation:

Given the directrix of y = 4 and focus of (0, 2), which is the equation of the parabola?

Answers

Answer:

The equation of the parabola is,

x²+4y-12=0

Political Stcibility​

Answers

Answer:

Political stability is a variable of great importance in a country's evolution since, across time, it was identified as causing law level of economic growth, but also it was presented as a consequence of poor economic development.

please help with this on the picture

Answers

Answer:

There is not enough information to solve this problem :(

Given the numbers 30 and 45, find the common factors of the two numbers.​​

Answers

Factors of 30: 1, 2, 3, 5, 6, 10, 15, 30

Factors of 45: 1, 3, 5, 9, 15, 45

The common factors between the two numbers are 1, 3, 5, 15.

Hope this helps!

A health club sold ten memberships in one week for total of $3000. If male memberships cost $300 and female memberships cost $300, then how many male memberships and how female memberships were sold?

Answers

Answer:

Step-by-step explanation:

The reason you haven't gotten an answer to this is because in its current formatting, there is no answer. Here's what I mean:

The first equation is going to be concerning the NUMBER of memberships sold, where m is male and f is female. The total number of memberships was 10:

m + f = 10

Now for the money equation. The total amount of money made from that number of memberships was 3000, where male memberships cost $300 and so do the female memberships, giving us an equation of

300m + 300f = 3000

Go back to the first equation and solve for either m or f. I solved for m in terms of f:

m = 10 - f and sub that into the second equation for m to get:

300(10 - f) + 300f = 3000 and

3000 - 300f + 300f = 3000. Here is where you find the problem. The -300f and the 300f cancel each other out, leaving you with the fact that

3000 = 3000 which it does, but it doesn't give us any viable answer.

I would have to say that since we can't do math on this, that the most credible answer you'll find is that the same number of male and female memberships were sold because 5 male memberships cost $1500 (5 memberships at $300 a piece is $1500) and 5 female memberships also cost $1500.

1500 + 1500 = 3000

Find the length of the segment indicated. circles 4

Answers

I need more information, comment on my "answer".

A rectangle has an area of 616 m² and a width of 22m. What is its length?

Answers

Answer:

l=28m

w Width

22

m

A Area

616

Using the formula

A=wl

Solving forl

l=A

w=616

22=28m

hope this will help you

make me brainliest

Answer:

Solve for length

l=28m

W= Width

22

m

A= Area

616

Using the formula

A=wl

Solving formula

l=A

W=616

22=28m

What is the slope-intercept equation of the line below?

Answers

Answer:

y=-5/4x+3

Step-by-step explanation:

y=mx+c

m = (y1-y2)/(x1-x2) =(-2-3)/(4-0) =-5/4

sub the values y=3, x=0 to find c,

3 =-5/4(0) + c

c = 3

gordan is twice as old as tony was when gordan was as old as tony is now. combined age of gordan and tony is 112 years. how old are gordan and tony now?​

Answers

gordan is 67 and Tony is 45 years old

Answer:

Answer

Tony:48

Gordan :64

Step-by-step explanation:

[tex]\begin{array}{c|c|c}Age&Gordon&Tony\\------------------&-------&-------\\now&g&t\\when\ gordan\ was\ as\ old\ as\ tony\ is\ now&t(=g-g+t)&t-g+t=2t-g\\\end{array}\\\\\\\\\left\{\begin{array}{ccc}g&=&2*(2t-g)\\g+t&=&112\\\end {array}\right.\\\\\\\left\{\begin{array}{ccc}3g&=&4t\\g+t&=&112\\\end {array}\right.\\\\\\\left\{\begin{array}{ccc}g&=&\dfrac{4}{3}\\\dfrac{7}{3} t&=&112\\\end {array}\right.\\\\\\\left\{\begin{array}{ccc}t&=&48\\g&=&64\\\end {array}\right.\\[/tex]

Proof:

16 years ago, Gordan was 48 and Tony 32.

64=2*32

64+48=112

Find mPMA + mCMT. Please help..

Answers

PMA = 37

CMT =  101 - 54 =47

Total = 37 + 47 = 84

Answer: A. 84

Find m∠DFC.

A. 23
B. 167
C. 46
D. 69

Answers

Answer:

A.23

maaf kalosalah !(!)!(!)!(!)!(!)!(!)!(!)!(!)!(!)!

The sum of 'n' terms of an arithmetic sequence is 4n2+3n. What is the first term, the common difference, and the sequence?

Answers

Answer:

Step-by-step explanation:

If the 2 is an exponent, it should be indicated with a circumflex:  4n^2+3n.

What is the first term?

a₁ = S₁ = 4·1² + 3·1 = 7

:::::

What is the common difference?

a₁ + a₂ = S₂ = 4·2² + 3·2 = 22

a₂ = 22-a₁ = 15

common difference d = a₂ - a₁ = 8

:::::

What is the arithmetic sequence?

The nth term is 7+(n-1)d = 7+(n-1)8 = 8n-1.

a₁ = 8·1-1 = 7

a₂ = 8·2-1 = 15

a₃ = 8·3-1 = 23

...

Can you help with this

Answers

9514 1404 393

Answer:

  D, C

Step-by-step explanation:

The only two rational expressions that have appropriate denominators are ...

  1/(x² +6x) . . . contributes a factor of x to the denominator

  (x+2)/(x² -36) . . . contributes a factor of (x -6) to the denominator

The proper order in the expression is ...

  [tex]\displaystyle\dfrac{x+2}{x^2-36}-\dfrac{1}{x^2+6x}=\dfrac{x^2+x+6}{x(x-6)(x+6)}[/tex]

Answer:

(x+2/x^2-36) - (1/x^2+6x) = (x^2+x+6/x(x-6)(x+6))

Step-by-step explanation:

I hope that helps

Please help ASAP please help me

Answers

9514 1404 393

Answer:

  C)  12 cm

Step-by-step explanation:

In a 30°-60°-90° triangle, the ratios of side lengths are ...

  1 : √3 : 2

This means the hypotenuse (AC) is 2/√3 times the length of the long side (AB).

  (10 cm)(2/√3) = 20/√3 cm ≈ 11.55 cm

Rounded to the nearest cm, the length of AC is 12 cm.

Which type of triangle has altitudes that form outside the triangle itself?
Select one:
a. acute
b. equiangular
c. obtuse
d. right

Answers

9514 1404 393

Answer:

  c. obtuse

Step-by-step explanation:

For an obtuse triangle, the altitudes from the vertices on either side of the obtuse angle will be drawn outside the triangle.

HELP ME PLSSS SUMMER SCHOOL A HARD

Answers

Answer:

y=2x+8

Step-by-step explanation:

Hope this helps

 In one of the examples he is working on, he knows that the two coordinates (0,6) and
(8, 10) are on the function that he is deriving. Using the information from these two
coordinates, determine the slope and y-intercept of the function Mike is looking for, and
then write out the correct function.

Answers

9514 1404 393

Answer:

  y = 1/2x + 6

Step-by-step explanation:

The slope m is given by the formula ...

  m = (y2 -y1)/(x2 -x1)

  m = (10 -6)/(8 -0) = 4/8 = 1/2

The y-intercept is given by the formula ...

  b = y -mx

  b = 6 -(1/2)(0) = 6

Then the slope-intercept equation is ...

  y = mx +b

  y = 1/2x +6

PLSSS HELP IM STRUGGLING SO HARD !!! ———————

Answers

Answer:

C)

Step-by-step explanation:

Just see the length of the R line, A and B are almost the same large when you add them.

Answer:

C).

Step-by-step explanation:

Because it is the largest side in that specific triangle

Someone help me please

Answers

Answer:

y=4

Step-by-step explanation:

The triangle on the right is a 30-60-90 triangle

The ratio of sides in a 30-60-90 triangle is 1:√3:2

y:x:8

SO y will be 4 because 8/y=2/1

please give me correct answer​

Answers

Answer:

answer of question number 1 is 2400, 2880, 3600 respectively.

answer of question number 2 is 1384 and 1680.

Step-by-step explanation:

100×24=2400

120×24=2880

150×24=3600

692×2=1384

420×4=1680

how many wall are there in your room? what are the shape of the floor and ceiling in your room ? how can you find the area of each shape?prepare the answer. present the conclusion in the form of report. plz answer the question in right.​how many wall are there in your room? what are the shape of the floor and ceiling in your room ? how can you find the area of each shape?prepare the answer. present the conclusion in the form of report. plz answer the question in right. plz answer the question steps by step.​

Answers

Answer:

4 walls in my room. The shape of my room is square and my ceiling in square. By looking at it and measuring it. Thats how I found my answer.

I believe this is correct if it is can you mark brainliest? Hope I helped!!!! :)

Answer:

8 walls etc....

Step-by-step explanation:

Ted wanted to determine if one brand of paper towels​ (Brand A) was stronger than another brand​ (Brand B). He performed a study where he randomly selected 25 sheets from each of the two​ brands, placed each sheet in an embroidery hoop​ (and tightened the​ hoop), placed 30 drops of water on each paper​ towel, and placed weights on each sheet until the sheet broke. He recorded the maximum weight on the paper towel before it broke. Which of the following statements is​ correct?
A) A​ two-tail test will be performed since the alternative hypothesis contains a​ "less than"
B) A​ one-tail test will be performed since the alternative hypothesis contains a​ "not equal​ to".
C) A​ one-tail test will be performed since the alternative hypothesis contains a​ "less than".
D) A​ two-tail test will be performed since the null hypothesis contains a​ "not equal​ to"
E) A​ two-tail test will be performed since the alternative hypothesis contains a​ "not equal​ to".

Answers

Answer:

C) A​ one-tail test will be performed since the alternative hypothesis contains a​ "less than".

Step-by-step explanation:

Test may be categorized as being one tailed or two tailed depending on the inequality sign used when defining the hypothesis ` ; Hypothesis whereby the alternative hypothesis takes a not equal to (≠) are categorized as two talked as the direction of does not point to either the left or right. Conversely, alternative hypothesis which takes a less Than sign or takes a greater Than sign are classed as being one tailed as the they point to a specified direction..

For the scenario given : we are to test the claim that one is stronger than the other ;

For this knid if test it has been stated explicitly that one is greater than another ;

H0 : μ = μ

H0 : μ < μ

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