I need help

[Sdrame56677]

I need help

 

[Deleted member 4993]

View attachment 15088I need help

After 2 years the total amount payable:

Offer 1

Payment after 2 years = A * (1+r)ⁿ = 6000 * (1 + 0.03)² = ? ....................................................................(1)

Offer 2

Payment after 1 year = A * (1+r)ⁿ = 6000 * (1 + 0.03)¹ = P₁

Payment after 2 years = P₁ * (1+r)ⁿ = P₁ * (1 + 0.05)¹ = ?................................................(2)

Now compare the payments calculated in (1) and (2)

 

[Sdrame56677]

I didn’t understand this working out do I plug it into a calculator ?.

 

[Deleted member 4993]

I didn’t understand this working out do I plug it into a calculator ?.

Look at your text book - do you see a similar example problem?

 

[JeffM]

I strongly suspect that this poster is interpreting "work" in "show your work" to mean the statement of the problem to be solved.

Yes, by all means, show us the original problem completely and exactly. But that is not what "show your work" means. It means to show us what you have done yourself to solve the problem so we can see where you are having difficulty. If you have done no work yourself because you are unsure where to start, at least tell us what you have considered as a place to start and what stopped you from proceeding.

Scratching everything out is of no use to us.

On this problem, what does compound interest mean?