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Re: Compounded Interest

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nikhil007 wrote:
what wrong am I doing, can someone point out?

{x(1+.02)^2 } -x > 100

taking x common on LHS
(x)(1.02)^2 -1>100

(x)(1.02)^2 >101

(x) 1.04 >101

x= 101\1.04

I think i am doing some silly calculation mistake here, can someone point me out pl.


Algebra:
x(1+0.02)^2 -x > 100
x(1.02^2-1)>100
x*0.0404>100
x>\frac{100}{0.0404}\approx{2475.25}

Donald plans to invest x dollars in a savings account that pays interest at an annual rate of 8% compounded quarterly. Approximately what amount is the minimum that Donald will need to invest to earn over $100 in interest within 6 months?
A. 1500
B. 1750
C. 2000
D. 2500
E. 3000

Annual rate of 8% compounded quarterly is approximately 4% in 6 months (a bit more).

x*0.04=100 --> x=2500.

Answer: D.

Similar questions to practice:
john-deposited-10-000-to-open-a-new-savings-account-that-135825.html
on-the-first-of-the-year-james-invested-x-dollars-at-128825.html
marcus-deposited-8-000-to-open-a-new-savings-account-that-128395.html
jolene-entered-an-18-month-investment-contract-that-127308.html
alex-deposited-x-dollars-into-a-new-account-126459.html
michelle-deposited-a-certain-sum-of-money-in-a-savings-138273.html
leona-bought-a-1-year-10-000-certificate-of-deposit-that-143742.html

Theory:
math-number-theory-percents-91708.html

Hope it helps.

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