Need help with my practice review. Thanks
1.If inflation is 6% a year compounded annually, what will it cost in 21 years to buy a house currently valued at $230,000? Round to the nearest cent.
2.A small company borrows $50,000 at 11% compounded monthly. The loan is due in 4 years. How much interest will the company pay? Round to the nearest cent.
3.By switching service providers, a family's telephone bill decreased from about $50 a month to about $47. What was the percent of decrease?
4.A child's dose of medicine is 1/6 of a pre-measured dose cup. If the bottle of medicine is the size of 9 dose cups, how many children's doses are there in the bottle?
5.Find the best buy.
Brand X: 16 oz for $6.08
Brand Y: 12 oz for $4.32
A)Brand X
B)Equal value
C)Not enough information
D)Brand Y
I will do #2, the hardest.
Amount of loan in 4 years
= 50000(1 + .11/12)^48
= ...
to find the interest charged subtract 50000 from the above result (I don't have a calculator handy)
How about letting me know what you have done so far for the rest.
The purpose of this site is not to do the assignments for you.
No, I know I totally understand the reason that I come to this website is to get tutored only. I will post I have done for the rest so if I did an error some one can correct me.
I still not get it what do you mean by ( 1 + . 11/12)^48 where did you get .11/12 and ^48 I'm so lost. Aslo me and my husband tried working out the first problem and it's so difficult to solve we tried it so many ways and we just can't get the correct anwer. Any tips please...
1. To calculate the future value of an investment with compound interest, you can use the formula:
FV = PV * (1 + r)^n
Where FV is the future value, PV is the present value, r is the interest rate, and n is the number of periods.
In this case, the present value (PV) is $230,000, the interest rate (r) is 6% (or 0.06 as a decimal), and the number of periods (n) is 21 years.
Plugging in these values into the formula, we get:
FV = $230,000 * (1 + 0.06)^21
Calculating this expression will give us the future value of the house after 21 years. Round the answer to the nearest cent.
2. To calculate the amount of interest paid on a loan with compound interest, you can use the formula:
I = P * (1 + r/n)^(n*t) - P
Where I is the interest paid, P is the principal (loan amount), r is the annual interest rate, n is the number of compounding periods per year, and t is the number of years.
In this case, the principal (P) is $50,000, the annual interest rate (r) is 11% (or 0.11 as a decimal), the number of compounding periods per year (n) is 12 (since it's compounded monthly), and the number of years (t) is 4.
Plugging in these values into the formula, we get:
I = $50,000 * (1 + 0.11/12)^(12*4) - $50,000
Calculating this expression will give us the amount of interest paid on the loan. Round the answer to the nearest cent.
3. To calculate the percent decrease, you can use the formula:
Percent Decrease = (Original Value - New Value) / Original Value * 100
In this case, the original value is $50 and the new value is $47.
Plugging in these values into the formula, we get:
Percent Decrease = ($50 - $47) / $50 * 100
Calculating this expression will give us the percent decrease.
4. To calculate the number of children's doses in the bottle, you can use the ratio of the child's dose to the total volume of the bottle.
In this case, the child's dose is 1/6 of a pre-measured dose cup, and the bottle is the size of 9 dose cups.
To find the number of children's doses in the bottle, we can divide the total volume of the bottle by the volume of each child's dose.
Number of children's doses = (9 dose cups) / (1/6 dose cup)
Simplifying this expression will give us the number of children's doses in the bottle.
5. To determine the best buy between Brand X and Brand Y, we need to compare the price per unit (ounce in this case) for each brand.
To do this, divide the price of each brand by its respective quantity:
Price per ounce (Brand X) = $6.08 / 16 oz
Price per ounce (Brand Y) = $4.32 / 12 oz
Compare the price per ounce of each brand. The brand with the lower price per ounce is the better deal.