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JamenS

  • 3 years ago

Clara invests $5,000 in an account that pays 6.25% interest per year. After how many years will her investment be worth $10,000? -12.6 -11.4 -13.7 -14.1

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  1. Hero
    • 3 years ago
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    Hint: Use compound interest formula

  2. JamenS
    • 3 years ago
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    i tired but my awnser is irrevelent to my choices... so idk i need sum1 2 break it down for me, im new to this subject

  3. JamenS
    • 3 years ago
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    y dont u try to explain it to me bkuz clearly his awnser didnt fit

  4. JamenS
    • 3 years ago
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    -12.6 -11.4 -13.7 -14.1

  5. Traxter
    • 3 years ago
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    The compound interest formula is: FV=PV(1+i)^n Where FV is the final value, PV is the present value, i is the interest rate and n is the time (in years). Are you able to try and work towards an answer now?

  6. JamenS
    • 3 years ago
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    i got 14.1?

  7. Traxter
    • 3 years ago
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    Could you write out the formula after you substituted in the values please? I got a different answer.

  8. JamenS
    • 3 years ago
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    wat did u get and how

  9. Traxter
    • 3 years ago
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    Please write out what you get after you put in the numbers and I'll see where you went wrong.

  10. JamenS
    • 3 years ago
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    jus explain how u set it up and how u got the awnser....

  11. Traxter
    • 3 years ago
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    Use the formula I just gave you. 5000(1+0.0625)^n=10000 Do you agree so far?

  12. JamenS
    • 3 years ago
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    yea

  13. Traxter
    • 3 years ago
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    So divide through by 5000 to get (1.0625)^n=2 Then use logs to find n. Are you able to finish the question?

  14. JamenS
    • 3 years ago
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    logs?

  15. Traxter
    • 3 years ago
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    Logarithms: \[\log_{1.0625} 2=n\]

  16. JamenS
    • 3 years ago
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    11.4?

  17. Traxter
    • 3 years ago
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    Exactly. Do you understand the method or is there something I could help explain?

  18. JamenS
    • 3 years ago
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    i got it i jus hat trouble figuring out how to input it on my calculator

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