Simon invested £20 000 at a compound interest rate of 2.5% per annum. At the end of n years the investment has a value

Simon invested £20 000 at a compound interest rate of 2.5% per annum. At the end of n years the investment has a value of £V. Work out the value of V when n=2

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  1. [tex]\huge\boxed{Answer\hookleftarrow}[/tex]

    Given,

    [tex]a = 2 \\ b = 3[/tex]

    So,

    [tex]N = 4a + 6b \\ N = 4(2) + 6(3) \\ N = 4 × 2 + 6 × 3 \\ N = 8 + 18 \\ N = 26[/tex]

    ⎇ The value of N is 26.

  2. M = 20

    Step-by-step explanation:

    Given that M is directly proportional to r³ then the equation relating them is

    M = kr³ ← k is the constant of proportion

    To find k use the condition when r = 4, M = 160, that is

    160 = k × 4³ = 64k (divide both sides by 64 )

    2.5 = k

    M = 2.5r³ ← equation of proportion

    When r = 2, then

    M = 2.5 × 2³ = 2.5 × 8 = 20

  3. 1) When r = 2, M = 20.

    2) When M  = 540, r = 6.

    Step-by-step explanation:

    M is a directly proportional to r cubed

    This means that the equation for M has the following format:

    [tex]M = ar^3[/tex]

    In which a is a multiplier.

    When r=4 M=160.

    We use this to find a. So

    [tex]M = ar^3[/tex]

    [tex]160 = a(4^3)[/tex]

    [tex]64a = 160[/tex]

    [tex]a = \frac{160}{64}[/tex]

    [tex]a = 2.5[/tex]

    So

    [tex]M = 2.5r^3[/tex]

    1) work out the value of M when r=2

    [tex]M = 2.5*2^3 = 2.5*8 = 20[/tex]

    When r = 2, M = 20.

    2) work out the value of r when M=540

    [tex]M = 2.5r^3[/tex]

    [tex]540 = 2.5r^3[/tex]

    [tex]r^3 = \frac{540}{2.5}[/tex]

    [tex]r^3 = 216[/tex]

    [tex]r = \sqrt[3]{216}[/tex]

    [tex]r = 6[/tex]

    When M  = 540, r = 6.

  4. A = $ 21,024.33

    A = P + I where

    P (principal) = $ 20,000.00

    I (interest) = $ 1,024.33

    Step-by-step explanation:

    First, convert R percent to r a decimal

    r = R/100

    r = 2.5%/100

    r = 0.025 per year,

    Then, solve our equation for A

    A = P(1 + r/n)nt

    A = 20,000.00(1 + 0.002083333/12)(12)(2)

    A = $ 21,024.33

    principal plus interest,

    from compound interest on an original principal of

    $ 20,000.00 at a rate of 2.5% per year

    compounded 12 times per year

    over 2 years is $ 21,024.33.

  5. M<varies>r³

    M=kr³(k= constant)

    when M=160,r=4

    160=k(4)³

    160=64k

    k=2.5

    therefore,M=2.5r³

    when r=2

    M=2.5r³

    M=2.5(2)³

    M=2.5(8)

    M=20

  6. A. M= 20

    B. r = 6

    Step-by-step explanation:

    M=kr³

    where k is the constant

    M= 160 , r 4

    160= k(4)³

    k = 160/4³= 2.5

    A. when r= 2 , M= kr³

    M= 2.5(2)³ = 20

    B. when M= 540, find r

    M= kr³

    r³ = M/k

    r³ = 540/2.5

    r³= 216

    r = 6

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