Question

Suppose you have just inherited a sum of money. Let’s say you choose to invest the money. How much did you inherit? Choose an amount between $1000 and $100,000. Do not choose an increment of 1000. In other words, do not choose $1000, $2000, $5000, $14000, etc.

What is your interest rate? Choose a rate between 0.5% and 3%.
Using yearly compounding, calculate the accrued value after 5 years, 10 years, and 15 years. Show all work. Try the 5 year and 10 years

Answer 1

Explanation:

Answer :-

→ Current in 10 Ω resistor = 4 A

→ Current in 20 Ω resistor = 2 A

→ Power of the 10 Ω resistor = 160 W

→ Power of the 20 Ω resistor = 80 W

Explanation :-

We have :-

→ 1st resistance (R₁) = 10 Ω

→ 2nd resistance (R₂) = 20 Ω

→ Total current (I) = 6 A

______________________________

The current in the 10 Ω resistor is :-

I₁ = (R₂/R₁ + R₂) × I

⇒ I₁ = (20/10 + 20) × 6

⇒ I₁ = 20/30 × 6

⇒ I₁ = 4 A

The current in the 20 Ω resistor :-

I₂ = (R₁/R₁ + R₂) × I

⇒ I₂ = (10/10 + 20) × 6

⇒ I₂ = 10/30 × 6

⇒ I₂ = 2 A

______________________________

Power of 10 Ω resistor :-

P₁ = I²₁ × R₁

⇒ P₁ = (4)² × 10

⇒ P₁ = 16 × 10

⇒ P₁ = 160 W

Power of 20 Ω resistor :-

P₂ = I²₂ × R₂

⇒ P₂ = (2)² × 20

⇒ P₂ = 4 × 20

⇒ P₂ = 80 W

Answer 2

• The investment is P = $32550
• Interest rate is r = 2% or 0.02
• Time is t = 5 years or t = 10 years

Formula to use:

• A = P(1 + r)^t

For t = 5 we get:

• A = 32550*(1 + 0.02)^5 = $35937.83

For t = 10 we get:

• A = 32550*(1 + 0.02)^10 = $39678.27