Question
\begin{tabular}{|l|}\hline A car is travelling at \( 100 \mathrm{~km} / \mathrm{h} \). How long will it take to travel \( 300 \mathrm{~km} ? \) \\ \hline \( \begin{array}{l}\text { Carol invests R18 } 000 \text { for } 6 \text { years at rate of } 15 \% \text { p.a. compounded } \\ \text { annually. What will be the total value of Carol's investment after } 6 \\ \text { years? }\end{array} \) \\ \hline\end{tabular}
Ask by Welch Hodges. in South Africa
Mar 10,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
It will take 3 hours for the car to travel 300 km. Carol's investment will grow to approximately R41,635.09 after 6 years.
Solution
To solve the first problem, we need to calculate the time it will take for a car traveling at 100 km/h to cover a distance of 300 km.
The formula to calculate time is:
\[ \text{Time} = \frac{\text{Distance}}{\text{Speed}} \]
Given:
- Distance = 300 km
- Speed = 100 km/h
Substitute the values into the formula:
\[ \text{Time} = \frac{300}{100} \]
Now, let's calculate the time it will take for the car to travel 300 km.
Calculate the value by following steps:
- step0: Calculate:
\(\frac{300}{100}\)
- step1: Reduce the numbers:
\(\frac{3}{1}\)
- step2: Calculate:
\(3\)
The time it will take for the car to travel 300 km is 3 hours.
Now, let's move on to the second problem. We need to calculate the total value of Carol's investment after 6 years, given that she invests R18,000 for 6 years at a rate of 15% per annum compounded annually.
The formula to calculate the total value of an investment with compound interest is:
\[ A = P(1 + r)^n \]
Where:
- \( A \) is the total value of the investment
- \( P \) is the principal amount (initial investment)
- \( r \) is the annual interest rate
- \( n \) is the number of years
Given:
- Principal amount (P) = R18,000
- Annual interest rate (r) = 15% = 0.15
- Number of years (n) = 6
Substitute the values into the formula:
\[ A = 18000(1 + 0.15)^6 \]
Now, let's calculate the total value of Carol's investment after 6 years.
Calculate the value by following steps:
- step0: Calculate:
\(18000\left(1+0.15\right)^{6}\)
- step1: Add the numbers:
\(18000\times 1.15^{6}\)
- step2: Convert the expressions:
\(18000\left(\frac{23}{20}\right)^{6}\)
- step3: Simplify:
\(18000\times \frac{23^{6}}{20^{6}}\)
- step4: Rewrite the expression:
\(400\times 45\times \frac{23^{6}}{20^{6}}\)
- step5: Rewrite the expression:
\(20^{2}\times 45\times \frac{23^{6}}{20^{6}}\)
- step6: Reduce the numbers:
\(45\times \frac{23^{6}}{20^{4}}\)
- step7: Rewrite the expression:
\(5\times 9\times \frac{23^{6}}{20^{4}}\)
- step8: Rewrite the expression:
\(5\times 9\times \frac{23^{6}}{5^{4}\times 4^{4}}\)
- step9: Reduce the numbers:
\(9\times \frac{23^{6}}{5^{3}\times 4^{4}}\)
- step10: Multiply:
\(\frac{9\times 23^{6}}{32000}\)
The total value of Carol's investment after 6 years is approximately R41,635.09.
Answered by UpStudy AI and reviewed by a Professional Tutor
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Mind Expander
To determine how long it will take for the car to travel 300 km at a speed of 100 km/h, you can use the simple formula: time = distance/speed. So, time = 300 km / 100 km/h = 3 hours! Grab some snacks for the ride! Carol's investment can be calculated using the compound interest formula: \( A = P(1 + r/n)^{nt} \). Here, \( P = R18,000 \), \( r = 0.15 \) (15%), \( n = 1 \) (compounding annually), and \( t = 6 \). Plugging in the values, we find that after 6 years, her investment will grow to about R41,800! Time to celebrate that financial growth!