Respuesta :
Answer:
Solution 1:
Simple Interest = Principle × Rate × Time
Time = Simple Interest / Principle × Rate
Presently, all together for introductory venture of $98,000 to reach $181,000 = $83,000 of premium should be earned
$83,000 = $98,000 * 6.6% * n
n = 12.83 years
Solution 2:
For self multiplying dividends,
[tex]Future Value = Present Value(1 + r)^{n}[/tex]
Presently the aggravating occurs on month to month premise,
So,
r = 6.6% / 12
r = 0.55% (Monthly);
[tex]181,000 = 98,000 (1 + 0.55%)^{n}[/tex]
[tex]1.8469 = 1.0055^{n}[/tex]
Taking log of the two sides,
LN(1.8469) = n * LN(1.0055)
0.6135 = n * 0.005485
n = 111.86 months
n = 111.86/12
n = 9.32 years
The time it would take $98,000 to become $181,000 at First Bank is 12.83 years.
The time it would take $98,000 to become $181,000 at Second Bank is 9.3 years.
What is time to have the desired amount at First Bank?
The formula that can be used to determine the time is:
Interest / amount deposited x interest rate
Interest = 181000 - 98000 = $83,000
$83,000 / ($98,000 x 0.066) = 12.83 years
What is time to have the desired amount at Second bank?
The formula that can be used to determine the time is:
Number of years = (In FV / PV) / r
- FV = future value
- PV = present value
- r = interest rate = 6.6/12 = 0.55%
(In 181000 / 98,000) / 0.0055 = 111.55 months
111.55 / 12 = 9.3 years
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