Question

Help pleaaaseeee..
1) Find the balance in the account $2000 principle earning 7% compounded semi-annually after 25 years.

2)A tractor costs $14,340 and depreciates in value by 15% per year. How much will the tractor be worth after 3 years?

Answer 1

For a) \[A=P(1+r/n)^{nt} \] where P is the principal investment, n is the number of times your principal is compounded annually , and r is the percentage increase as a decimal. So we have P=2000 , n=2, t=25, and r=.07

Answer 2

so we're gonna write it like this 2000(1+.07/2)^25 ? @shawmoes

Answer 3

@proud_yemeniah The expression in brackets must be raised to the power of nt where n = 2 and t = 25. In your substitution you have not considered n when writing the value of the power.

Answer 4

i don't really understand what im suppose to do @kropot72

Answer 5

Substituting into the formula given by @shawmoes gives:
\[\large A=2000(1+\frac{0.07}{2})^{(2\times25)}\]

Answer 6

we then use the PEDMAS rule right ? @kropot72

Answer 7

first solve parentheses which is exponent

Answer 8

are you there @proud_yemeniah_

Answer 9

yes, so its gonna be 2000(1+0.07/2)^50

Answer 10

@Nnesha

Answer 11

That's correct.

Answer 12

so then is it gonna be like 2000*1 .07/2^25 ?

Answer 13

@shawmoes

Answer 14

nope you can't just add 1 and .07
bec
\[(1+ \frac{ .07 }{ 2 })\]

first you have to find common denominator

Answer 15

i don't really understand @Nnesha

Answer 16

multiply 2 by 1 and then add .07