Let's solve each of the problems step by step.
Problem 1: Future Value of an Investment
To calculate the future value of the investment, we can use the formula for compound interest:
\[ FV = P(1 + r)^n \] Where:
- \( FV \) is the future value of the investment
- \( P \) is the principal amount ($5000)
- \( r \) is the annual interest rate (7% or 0.07)
- \( n \) is the number of years the money is invested (18 years)
Substituting the values into the formula:
\[ FV = 5000(1 + 0.07)^{18} \]
Calculating the expression inside the parentheses:
\[ FV = 5000(1.07)^{18} \]
Now calculating \( (1.07)^{18} \):
\[ (1.07)^{18} \approx 3.386 \]
Now, we multiply this by the principal:
\[ FV \approx 5000 * 3.386 \approx 16930 \]
Therefore, the amount in the college fund after 18 years will be approximately $16,930.00.
Problem 2: Remaining Stray Dogs
The number of stray dogs decreases by 8% each month. We can use the formula for exponential decay:
\[ N = N_0(1 - r)^t \] Where:
- \( N \) is the remaining quantity (number of dogs after 12 months)
- \( N_0 \) is the initial quantity (400 dogs)
- \( r \) is the fraction that is placed (8%, or 0.08)
- \( t \) is the time in months (12 months)
Substituting the values:
\[ N = 400(1 - 0.08)^{12} \]
Calculating \( (1 - 0.08) = 0.92 \):
\[ N = 400(0.92)^{12} \]
Calculating \( (0.92)^{12} \):
\[ (0.92)^{12} \approx 0.368 \]
Now, we multiply this by the initial amount:
\[ N \approx 400 * 0.368 \approx 147.2 \]
Since we can't have a fraction of a dog, we round down to 147. Therefore, the estimated number of stray dogs remaining after 12 months will be 147.
Problem 3: Future Cost of Groceries
To calculate the future cost of groceries considering the inflation rate, we use a similar formula to that of compound interest:
\[ FV = P(1 + r)^n \]
Where:
- \( FV \) is the future cost
- \( P \) is the current cost ($96.50)
- \( r \) is the annual inflation rate (1.8% or 0.018)
- \( n \) is the number of years (20 years)
Substituting the values:
\[ FV = 96.50(1 + 0.018)^{20} \]
Calculating the expression inside the parentheses:
\[ FV = 96.50(1.018)^{20} \]
Now calculating \( (1.018)^{20} \):
\[ (1.018)^{20} \approx 1.48595 \]
Now we multiply this by the current cost:
\[ FV \approx 96.50 * 1.48595 \approx 143.74 \]
Thus, the estimated cost of that same basket of groceries in 20 years will be approximately $143.74.
Final Answers:
- Approximately $16,930.00
- Approximately 147 stray dogs
- Approximately $143.74