I'm trying to work on this practice question But got confuse on this question:
find the value of P = Q ( 1 - 1.03^-20 / 0.03)
where Q is 1000 to the nearest whole number?
Thank you =)
well,
1 - 1.03^-20 / 0.03 = -17.455
Something tells me you want
(1 - 1.03^-20) / 0.03 = 14.87747
Now P is easy to figure.
so, 1000 (14.87747) = 14876.6 ?
To find the value of P, we need to perform the calculations step by step:
Step 1: Calculate the value of 1.03^-20.
To do this, raise 1.03 to the power of -20.
Step 2: Calculate (1.03^-20 / 0.03).
Divide the value obtained in step 1 by 0.03.
Step 3: Find Q to the nearest whole number.
The value of Q is given as 1000. Round this number to the nearest whole number.
Step 4: Substitute the values obtained in steps 2 and 3 into the equation P = Q (1 - (1.03^-20 / 0.03)).
Let's perform the calculations:
Step 1: 1.03^-20 = 0.743577510271662
Step 2: (1.03^-20 / 0.03) = 0.743577510271662 / 0.03 = 24.78591667572207
Step 3: Q = 1000 (rounded to the nearest whole number)
Step 4: P = 1000 (1 - 24.78591667572207) = 1000 * -23.78591667572207 = -23,785.91667572207
So, the value of P is approximately -23,785.92. Note that this answer may vary slightly depending on the rounding of Q in step 3.
Please let me know if you need any further clarification.