Question

18. In the month of October, candy production increases by a 7% every day until the 51 September, the total candy produced is 1.2 million per day. How much candy is made company meet a quota of 10 million by the end of the month? s by a 7% every day until the 31" of the month. At the end of r day. How much candy is made on October 31"? Can a 19. Every 5 years the price of a new car poes up by 8%. In 1975 a new car cost $12.500. How much soon expect to pay in the year 2020 for a new car? 20. Let's say you invest your money in a bank that offers annual compound interest at 5% for 10 years. If you put $30,000 into the account, how much should you expect out of it? (What is the balance?) that offered only 0.25% interest, how much is in the account 21 If vou invested $1200 of your money into a bank that offered only 0.25% interest how after you left it in the bank for 20 years compounded weekly?

Answer 1

18.Candy Production on September 30=1.2 million

Rate of increase per day=7%=0.07

Candy Production on October 1=1.2*1.07 million

Candy Production on October 2=1.2*1.07*1.07=1.2*(1.07^2) million

Candy Production on October 31=1.2*1.07*1.07=1.2*(1.07^31) million=9.774135 million

Quota of 10 million cannot be met

19.Price in 1975=$12500

Price in 1980=12500*1.08

Price in 1985=12500*1.08*1.08=12500*(1.08^2)

Number of 5 year periods between 2020 and 1975=(2020-1975)/5=9

Price in 2020=12500*(1.08^9)=$24987.56

20

Future Value (FV)=Present Value(PV)*((1+i)^N)

Present Value PV=$30,000

i=Interest rate =5%=0.05

N=Number of years=10

Amount Balance =FV=30000*(1.05^10)=$48866.84

21.

PV=$1200

i=0.25%=0.0025

N=20

Amount Balance =FV=1200*(1.0025^20)=$1261.45