Re: Algebra word problems

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) ;)

Re: Algebra word problems

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

Re: Algebra word problems

"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

Re: Algebra word problems

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