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Please help with part d and needed parts before (it is ok to model and use excel)

Please help with part d and needed parts before (it is ok to model and use excel)-example-1

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Answer:

Step-by-step explanation:a. Change and Percentage Change from Year 1 to Year 5:

Change = Balance at Year 5 - Balance at Year 1 = $1908.80 - $1489.55 = $419.25.

Percentage Change = (Change / Balance at Year 1) * 100 = ($419.25 / $1489.55) * 100 ≈ 28.15%.

b. Average Rate of Change from Year 1 to Year 5:

Average Rate of Change = (Change / Number of Years) = ($419.25 / 4 years) = $104.81 per year.

Interpretation: On average, your balance increased by approximately $104.81 each year from the end of year 1 through the end of year 5.

c. Average Rate of Change from the Middle of Year 4 to the End of Year 4: Unfortunately, we cannot calculate this average rate of change because we don't have the data for the middle of year 4.

d. Finding a Model for the Data and Average Rate of Change over the Last Half of Year 4:

To find a model, you can use the formula A = P * e^(rt), where A is the amount, P is the principal (initial investment), e is the mathematical constant (~2.71828), r is the annual interest rate (unknown), and t is the time in years.

Use the data at year 5 ($1908.80) and the initial investment ($1400) to solve for 'r.'

Calculate 'r' to be approximately 5.13%.

With this 'r,' you can find the balance at the middle of year 4 and the end of year 4 and then calculate the average rate of change over that period.

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