BUSINESS MATH.



Find the amount if $100 is invested at 17% compounded monthly for 17 months.
Amount = ?

Find the amount if $100 is invested at 17% compounded monthly for 17 months.
Amount = ?

My Solution
p=100
r=0.17
t=17

A=p(1+rt)
A=100(1+0.17*17)

A mutual fund pays 8% compounded monthly. How much should I invest now so that 29 months from now I will have $4800 in the account?

Charlie wants to buy a $300 stereo set in 8 weeks. How much should he invest now at 3% simple interest to have the money in 8 weeks?
Investment = $


My solution
simple interest
I=p*r*t
8 weeks= 8/52 year
I=300*0.03*8/52
=1.3846

Kelly and Justin each win monetary prizes on the TV show US Icon. Kelly immediately deposits her money in an account paying 6.4 percent effective, while Justin immediately deposits his in an account paying 5.7 percent effective. After 6 years, they decide to get married, and discover that they have a total of dollars combined in their two accounts. If the sum of their original prizes was 59000 dollars, how much did Justin originally win?
Answer = dollars.

While we are happy to HELP, we will NOT do all the work for you.
Show us where you are having an issue and we'll assist.

Quote:

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Originally Posted by Curlyben

While we are happy to HELP, we will NOT do all the work for you.
Show us where you are having an issue and we'll assist.

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I solved what I know but I think they are not correct and I need help =(

Quote:

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Originally Posted by red rose93

Charlie wants to buy a $300 stereo set in 8 weeks. How much should he invest now at 3% simple interest to have the money in 8 weeks?
Investment = $


My solution
simple interest
I=p*r*t
8 weeks= 8/52 year
I=300*0.03*8/52
=1.3846

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You are being asked for the value of P, not the value of I. But the thing is, you don't have I either.

What you need to find is a sum, P, which when added to an interest I will give $300.

And you know r and t:

I = P * r * t

I = P(0.03)(8/52)

So:

P + I = $300
I = P(0.03)(8/52)

This is a simultaneous equation problem now. Can you solve it?