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
15500 times 0.37 is 5735.
$5735
The 11% statement is extra information.
Felecia's husband will catch up to her 1 hour 30 minutes after leaving.
Step-by-step explanation:
Step 1; Felecia is traveling at 45 mph, her husband starts 20 minutes after her but travels at a speed of 55 mph. So first we need to calculate how much of a head start Felecia got.
Head start = 
× 45 miles an hour = 15 miles.
So Felecia got a head start of 15 miles.
Step 2; Since Felecia and her husband are traveling at different rates, we can determine how much distance there is between them. Since Felecia is traveling at 45 mph and her husband is traveling at 55 mph, their gap in between is closing at a rate of 55 - 45 = 10 miles every hour. So for every hour, the gap between them is closing by 10 miles.
Total gap initially = 15 miles.
The rate at which gap is being closed = 10 miles an hour.
Time to close the gap = 15 / 10 = 1.5 hours.
