Which of the lines that appear in the graph would be parallel to a line with a slope of 3 and a y-intercept at (0, 3)?
2 answers:
You might be interested in
Answer:
The amount needed as a one-time deposit to earn $7,500 in 3 years is <em>$4388.17</em>
Step-by-step explanation:
<u>Basic Finance Formulas </u>
One of the most-used formulas to compute present and future values is
Where FV is the future value, PV is the present value, r is the interest rate and n is the number of periods. It's vital to keep in mind that r and n must be referred to the same compounded time, e.g. r is compounded monthly and n is expressed in months
The question requires to compute the PV needed as a one-time deposit to earn a future value of $7,500 in 3 years at a 1.5% rate compounded monthly.
FV=7,500
r=1.5%=0.015
n=3*12=36 months
We converted n to months because r is compounded monthly . The formula
must be managed to make PV isolated
Answer: The amount needed as a one-time deposit to earn $7,500 in 3 years is $4388.17
Let us see... ideally we would like to have all equations with the same exponent or the same base so that we can compare the rates. Since the unknown is in the exponent, we have to work with them. In general, ![x^(y/z)= \sqrt[z]{x^y}](https://tex.z-dn.net/?f=x%5E%28y%2Fz%29%3D%20%5Csqrt%5Bz%5D%7Bx%5Ey%7D%20)
.
Applying this to the exponential parts of the functions, we have that the first equation is equal to:
250*(![\sqrt[5]{1.45} ^t](https://tex.z-dn.net/?f=%20%5Csqrt%5B5%5D%7B1.45%7D%20%5Et)
)=250*(1.077)^t
The second equation is equal to: 200* (1.064)^t in a similar way.
We have that the base of the first equation is higher, thus the rate of growth is faster in the first case; Choice B is correct.
Applying this to the exponential parts of the functions, we have that the first equation is equal to:
250*(
The second equation is equal to: 200* (1.064)^t in a similar way.
We have that the base of the first equation is higher, thus the rate of growth is faster in the first case; Choice B is correct.