(a) just plug and chug:
100(1+x/2)^20 = 300
(1+x/2)^20 = 3
1+x/2 = 3^(1/20)
x = 2(3^(1/20)-1) = 0.1129 or 11.3%
(b) See
http://www.wolframalpha.com/input/?i=plot+y%3D100(1%2Bx%2F2)%5E20,+y%3D300+for+0%3C%3Dx%3C%3D0.12
the compound interst forumla is A= P(1+i)^n. consider the function in the form of y= 100(1+x/2)^20, where y is the compound amount.
a) determine the required annual interest rate of investment to the nearest tenth of a percentage of 10 years that will give an amount of $300
b) Graph the function y= 100(1+x/2)^20 and y=300
1 answer
1 answer