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00kirsten

  • 3 years ago

How much money would you have to invest to make $300 within 2 years if the interest rate was 4.5%?

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  1. INewton
    • 3 years ago
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    \[x \times 1.045^2 \geq 300 \implies x \geq \frac{300}{1.045^2}\]

  2. 00kirsten
    • 3 years ago
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    umm so whats the answer??

  3. INewton
    • 3 years ago
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    Umm, umm, umm... the answer is do your own homework, kiddo.

  4. INewton
    • 3 years ago
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    Or read what I posted and work out the answer for yourself.

  5. INewton
    • 3 years ago
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    Interest rate of 4.5% => value goes up by a factor of 1.045 each year.

  6. 00kirsten
    • 3 years ago
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    but that is confusing, thats not what it shows me to do on my practice stuff

  7. 00kirsten
    • 3 years ago
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    my practice stuff is like P = r x t stuff ... what you posted looks nothing like what im supposed to do, thats why i dont understand what u wrote

  8. INewton
    • 3 years ago
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    If m money is invested, you have 1.045m after one year, and 1.045^2 m money after two years. if this equals 300, you have m = 300/1.045^2 = 287.08 to 2 decimal places. So if you want over 300, the mimnimum amount (to the nearest $) is 288. There.

  9. INewton
    • 3 years ago
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    Where 1.045^2 = 1.045 x 1.045

  10. 00kirsten
    • 3 years ago
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    isnt it supposed to look something like ... 300 x .045 x 2 = ??

  11. INewton
    • 3 years ago
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    Oh, you want 300 extra, not 300 in total? My mistake, sorry. It would be m * 0.045 * 0.045 = 300 m=300/0.045^2 = 300/(0.045 * 0.45)

  12. 00kirsten
    • 3 years ago
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    300/0.045 x 2 = ?? is that wat its supposed to be like

  13. INewton
    • 3 years ago
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    The last one was a typo, sorry again. They're both 0.045. But it's 0.045 TIMES ITSELF. Not x 2. Sorry, so many silly mistakes by me, I was a little too mean earlier.

  14. INewton
    • 3 years ago
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    300/(0.045 x 0.045)

  15. 00kirsten
    • 3 years ago
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    are you sure lol

  16. INewton
    • 3 years ago
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    I study Mathematics at the best University in the world. I am sure.

  17. 00kirsten
    • 3 years ago
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    and what university is that mr.newton

  18. INewton
    • 3 years ago
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    Cambridge, England.

  19. 00kirsten
    • 3 years ago
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    ohhh ic. My dads home england. So about that equation ... why did u do 0.045 twice??? im pretty sure i have to show the 2 in my equation

  20. INewton
    • 3 years ago
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    In the first year, it goes up by 4.5% , so you have 0.045 more. The second year, it goes up by it again, so you have ((1.045) x starting money) x 1.045) = starting money x 1.045 x 1.045 or 1.045^2. The extra money is 0.045 x 0.045 x starting money, and this is equal to 300.

  21. INewton
    • 3 years ago
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    Wait, one second. Sorry, it's about 4am here. You have 1.045 * 1.045 the starting money. If you want 300 extra, then 1.045^2 x starting money = starting money +300 So 300 = (1.045^2-1)m so m = 300/(1.045^2-1) = 300/((2.045)(0.045)). Wow, I am so sorry. What is wrong with me today. The answer is $3259.98 = $3260 3260 * 1.045 * 1.045 = 3560 = 3260 + 300. WOW, sorry, I have never looked at it for the profit not total, so made a silly mistake. Goodnight, And sorry again. fluttering hell, what's wrong with me today.

  22. INewton
    • 3 years ago
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    That is possibly the most embarrassingly bad maths I have done in my entire life.

  23. 00kirsten
    • 3 years ago
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    wat is * ?

  24. INewton
    • 3 years ago
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    Just another symbol for times, x, I use them interchangeably :(

  25. 00kirsten
    • 3 years ago
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    so he must invest 3259.98 to make $300 within 2 years if the interest rate was 4.5% ???

  26. INewton
    • 3 years ago
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    Yes, yes - 300/(1.045 x 1.045 - 1) = 300/(2.045 x 0.45) = 3259.98 3259.9837, to be exact, but $3260 is probably what you want. I am going, sorry for wasting your time (and mine, I am going to have about 3 hours sleep now :/) Have a nice life.

  27. 00kirsten
    • 3 years ago
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    ok thank you...

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