Question

Tina Turner received a $10,000 gift from her grandfather Ike. She wants to invest the full amount for use as part of a down payment on a house that she plans to purchase in 4 years. What type of computation should she use to determine how much she will have after 4 years

Answer 1

She will owe $500 after 4 payments.

Step-by-step explanation:

With the help of graph

Number of payments (x) Balance remaining(y)

0 2500

1 2000

2 1500

Since it is linear function .

So, we will use two point slope form to find the equation for the given situation.

----A

Substitute the values in A

Where x is the number of payments

y is the remaining payment

This equation represents the given situation.

So, to find the amount remaining after 4 payments .Substitute x =4

Hence she will owe $500 after 4 payments.

Answer 2

future value of a single amount

Step-by-step explanation:

Here are the options to this question :

Future value of a single amount

Present value of a single amount

Simple interest

Present value of an annuity

Future value of an annuity

Tina would want to determine the future value (value in 4 years) of a single amount (10,000).

The formula for finding the future value of a single amount is :

FV = P (1 + r)^n

FV = Future value

P = Present value

R = interest rate

N = number of years