Question

(a) \( K 16,000 \) accumulate to \( K 27,200 \) in 3.5 years? (b) money double itself in 8 years? (c) K14,000 accumulate \( K 450 \) interest in 2 months? 5. A debt of \( K 70,000 \), which is due 10 years from now is instead to be paid off by three instalments: \( K 30,000 \) now, \( K 20,000 \) in five years, and a final payment at the end of 9 years. What would this payment be if an interest rate of \( 5 \% \) compounded semi-annually is assumed?

          (a) \( K 16,000 \) accumulate to \( K 27,200 \) in 3.5 years?
(b) money double itself in 8 years?
(c) K14,000 accumulate \( K 450 \) interest in 2 months?
5. A debt of \( K 70,000 \), which is due 10 years from now is instead to be paid off by three instalments: \( K 30,000 \) now, \( K 20,000 \) in five years, and a final payment at the end of 9 years. What would this payment be if an interest rate of \( 5 \% \) compounded semi-annually is assumed?

(a) K 16,000 accumulate to K 27,200 in 3.5 years?
(b) money double itself in 8 years?
(c) K14,000 accumulate K 450 interest in 2 months?
5. A debt of K 70,000, which is due 10 years from now is instead to be paid off by three instalments: K 30,000 now, K 20,000 in five years, and a final payment at the end of 9 years. What would this payment be if an interest rate of 5 % compounded semi-annually is assumed?

Added by John N.

Algebra and Trigonometry

James Stewart, Lothar Redlin, Saleem… 2nd Edition

Chapter 5

Instant Answer

Solved by Expert Adi S

04/30/2024

Step 1

In this case, A = K 27,200, P = K 16,000, n = 1 (since it doesn't specify how many times the interest is compounded per year, we assume it's compounded annually), and t = 3.5 years. We need to solve for r. 27,200 = 16,000(1 + r/1)^(1*3.5) 1.7 = (1 + Show more…

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