Choice 1: Payments of $ 2750 now, $ 3050 a year from now, and $ 3390 two years from now.
Choice 2: Three yearly payments of $ 3050 starting now.
Modification: Interest is compounded continuously instead of annually.
(a) If the interest rate on savings were 4.92 %, which would you prefer?
(b) What is the interest rate that would make both choices equally lucrative? %
I got for part A the answer is 1, but for part B i keep getting messed up percentages like negatives and 90% and stuff like dat.
2007-02-02 06:52:18 · 3 answers · asked by Diggler AKA The Cab Driver 1 in Science & Mathematics ➔ Mathematics
4 dollars
2007-02-02 06:56:34 · answer #1 · answered by slider 2 · 0⤊ 0⤋
$2750 + $3050 + $3390 > 3*$3050
The rest is nonsense.
2007-02-02 07:17:07 · answer #2 · answered by Helmut 7 · 1⤊ 0⤋
a(t) = (0, 0, 6) => v(t) = (A, B, 6t + C) A = a million, B = a million, C = -2 v(t) = (a million, a million, 6t - 2) c(t) = (t + D, t + E, 3t² - 2t + F) D = 3, E = 4, F = 0 c(t) = (t + 3, t + 4, 3t² - 2t)
2016-12-16 19:41:19 · answer #3 · answered by Anonymous · 0⤊ 0⤋