Revision as of 23:53, 25 November 2023 by Admin (Created page with "A man deposited $1000 into a savings account seven years ago. The account earns interest at 4% per annum effective. Today he withdraws half of the money in the accounts. In how many years from now will the remaining funds first exceed $1000 again? <ul class="mw-excansopts"> <li>10.7</li> <li>11</li> <li>11.25</li> <li>11.7</li> <li>12</li> </ul> '''References''' {{cite web |url=https://web2.uwindsor.ca/math/hlynka/392oldtests.html |last=Hlynka |first=Myron |website=we...")
ABy Admin
Nov 25'23
Exercise
A man deposited $1000 into a savings account seven years ago. The account earns interest at 4% per annum effective. Today he withdraws half of the money in the accounts. In how many years from now will the remaining funds first exceed $1000 again?
- 10.7
- 11
- 11.25
- 11.7
- 12
References
Hlynka, Myron. "University of Windsor Old Tests 62-392 Theory of Interest". web2.uwindsor.ca. Retrieved November 23, 2023.
ABy Admin
Nov 25'23
Solution: A
[math]1000=(1 / 2) 1000(1.04)^7(1.04)^n[/math] so [math]2=(1.04)^{7+n}[/math] so [math](7+n) \ln (1.04)=\ln 2[/math] so [math]n=-7+\ln 2 / \ln (1.04)=[/math] 10.673 years.
References
Hlynka, Myron. "University of Windsor Old Tests 62-392 Theory of Interest". web2.uwindsor.ca. Retrieved November 23, 2023.