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I took advanced applied calculus last semester and i am feeling mighty stupid right now. My girlfriend is talking college algebra 121 as a independent study. We can't figure out this problem, can anyone help? Its just on the tip of my mind, but i don't remember how to do it! Please someone help me.
Your message is far longer than the problem, though you managed to write it by your own - would you like to post the problem in a more readable way (so we don't need to turn clockwise our screens/laptops) ;)
let x = loan @19%
1000000-x @ 16%
minimum return 18%
x(1.19) + 1000000 -x(1.16)=1.18(1000000)
solve for x and 1000000-x
"let x = loan @19%
1000000-x @ 16%
minimum return 18%
x(1.19) + 1000000 -x(1.16)=1.18(1000000)
solve for x and 1000000-x"
This doesn't make sense to me.
1.19x + 1,000,000-1.16x = 1.18(1000000)
1.03x +1,000,000 = 1180000
1.03x = 180000
x=174757.2816
Okay so now it does make sense to me as far as the answer goes. But can you explain why your using 1.19 and 1.16 instead of .19 and .16? That's what confuses me
EDIT: I am still confused on why its 1.03 instead of .03? I know that the correct answer is 1.03, but i dont know how to get there. 1.19-1.16 is .03. Please elaborate for me
A dollar invested today at 18% annual interest is worth 1.18 dollars 1 year hence.For longer terms the capital recovery factor is (1+i)^n where n is years and i is the fractional interest