Question

a tractor cost 15,450,000 and depreciates in value by 14% per year. How much will the tractor be worth after 3 years?

a) $22,889.85
b) $15,408.00
c) $8,451.28
d) $9,827.07

Answer 1

Hey, could you help, I think it's C

Answer 2

I'll try.

Answer 3

@OrangeMaster can you help plz

Answer 4

it's D

Answer 5

How though

Answer 6

15,450.00 * (1-0.14)^3

Answer 7

Since it depreciates in value by 14% you know that it's value will become 86% (100% -14%) of its current value

Answer 8

I have two more like this can you help with them

Answer 9

Now, you build an equation.... hahahaha ok. I won't just give you the answer though, I'll show you how to fish :)

Answer 10

Ok good

Answer 11

It'll take me a minute I'll do them separate though. Hold on

Answer 12

Don't bother writing the multiple choices. I'll show you how to find the answer.

Answer 13

kk

Answer 14

Just so you know, this is a tangent. I was in the middle of applying to university, but I hate filling out applications.

Answer 15

a 3,500.00 principal earns 3% interest, compounded semiannually. After 20 years, what is the balance in the account.

What's a tagent?

Answer 16

tangent is like... Going off on a tangent, a distraction, a digression. Doing something sort of unrelated to what you were doing or talking about before.

Answer 17

oh ok

Answer 18

Ok so you have a 3,500 principal and 3% interest compounded semi annually. What does it mean to have an interest compounded semi-annually?

Answer 19

It's ok if you don't know, just say so

Answer 20

ok, I don't

Answer 21

hello?

Answer 22

U still there?

Answer 23

help @FlvsGirl

Answer 24

Ya You weren't responding? Maybe my connection had trouble.

Answer 25

ok

Answer 26

Ok so compounding semi annual interest is when an interest is calculated twice that year

Answer 27

ok, so would you multiply 3,500 twice

Answer 28

It actually makes a small difference to the overall outcome. It might seem kind of trivial, but there is a difference. I'll show you in a second.

Answer 29

ok

Answer 30

would it be $7,700

Answer 31

no, but it's good that you're trying

Answer 32

Let's build the equation

Answer 33

we know the interest is 3% per year

Answer 34

ok

Answer 35

We start with the principal 3,500 and we know that we gain money

Answer 36

yes

Answer 37

3,500 * interest^(how many times the interest is calculated)

Answer 38

what number would you use for 3% interest? (as a decimal number)

Answer 39

.3

Answer 40

but we know that we're gaining right. So if you multiply 3,500 by 0.3 then we'd lose money

Answer 41

ok, ya

Answer 42

so that would be 1,050

Answer 43

No, remember interest means we're gaining money. So we should multiply by a number that is larger than 1

Answer 44

3,500 * (1.03)

Answer 45

ok

Answer 46

3,605

Answer 47

0.03 is 3% 0.30 is 30% 1.03 is 103% when turning a percentage into a decimal. Thing is though, when they talk about interest, they only talk about the percentage gain. So you start with 100% of what you started with and then on top of that is 3%. So 103% which is 1.03 as a decimal

Answer 48

ok

Answer 49

You're getting close to the answer now. So far we have, 3,500*(1.03) but the thing is that the interest is calculated semi annually.

Answer 50

This is kind of a financial jargon. They are saying that the interest in a year will be 3%, but it is calculated twice in a year. So that doesn't mean they will give you 3% twice in a year, but what they do is they divide that for how many times they will give it to you over a year.

Answer 51

I.e. semi-annually means they calculate it twice. So it is 3500*(1 +0.03/2)^2 for one year

Answer 52

3,500*(100% + interest/times per year)^(times per year/number of years)

Answer 53

ok, so.......

Answer 54

3,500*(1 + 0.03/2)^(2/n)

Answer 55

6, 349

Answer 56

and 6 cents

Answer 57

or 5,600

Answer 58

How many years is the interest being calculated for?

Answer 59

twice

Answer 60

20 years isn't it?

Answer 61

20

Answer 62

I made a little mistake here: 3,500*(1 + 0.03/2)^(2*n)

Answer 63

In the exponents bracket it should be multiplied by the number of years. Since it's calculated twice per year, then times how many years.

Answer 64

What did you get?

Answer 65

Oh you did get the answer up there, I just noticed 6349 is right! Bravo :)

Answer 66

Oh, thank you I have one more hold on

Answer 67

Ok, I'm gonna let you try the next one before I say much.

Answer 68

Ok

Answer 69

A 3,300.00 principal earns 4% interest compound annually. After 3 years what is the balance in the account?

Answer 70

Ok, so what's compound annually mean though

Answer 71

That means the interest is calculated once a year.

Answer 72

Compounded just means how often the interest is calculated.

Answer 73

ok

Answer 74

Will this be big money then since its calculated once or low number

Answer 75

I don't know if this is right but is it, 10,296.00

Answer 76

@OrangeMaster help plz

Answer 77

Does anybody like my new profile picture? It took a lot of work.

Answer 78

Help with what?

Answer 79

I do

Answer 80

A 3,300.00 principal earns 4% interest compound annually. After 3 years what is the balance in the account?

Answer 81

I don't know. Do you know if anybody else can help you? Try tagging people.

Answer 82

This one person was helping but they won't respond

Answer 83

@klik

Answer 84

Yup

Answer 85

HHHHHEEEEELLLLLOOOOO!!!!!!!!!!!!!!!!!!!!!!!!!

Answer 86

HHHHHEEEEELLLLLOOOOO!!!!!!!!!!!!!!!!!!!!!!!!!

Answer 87

Hi
I ate a peanut butter sandwhich

Answer 88

Not 10,296

Answer 89

3300*(1.04)^3 <---- Think about this. Well I have to go now. I'd like to get some more work done. Hope this has helped at least a little bit.

Answer 90

Ok

Answer 91

Good luck!