At the beginning of a month, a customer owes a credit card company $8480. In th middle of the month, the customer repays $A, where A < $8480, and at the end of th month the company adds interest at a rate of 6% of the outstanding debt. This proces is repeated with the customer continuing to pay off the same amount, $A, each month (a) Find the value of A for which the customer still owes $8480 at the start of each month. (b) If A = 1000, calculate the amount owing at the end of the eighth month. (c) Show that the value of A for which the whole amount owing is exactly paid off afte the nth payment is given by 8480R¹-¹ (R-1) R" - 1 (d) Find the value of A if the debt is to be paid off exactly after 2 years. A = where R=1.06
At the beginning of a month, a customer owes a credit card company $8480. In th middle of the month, the customer repays $A, where A < $8480, and at the end of th month the company adds interest at a rate of 6% of the outstanding debt. This proces is repeated with the customer continuing to pay off the same amount, $A, each month (a) Find the value of A for which the customer still owes $8480 at the start of each month. (b) If A = 1000, calculate the amount owing at the end of the eighth month. (c) Show that the value of A for which the whole amount owing is exactly paid off afte the nth payment is given by 8480R¹-¹ (R-1) R" - 1 (d) Find the value of A if the debt is to be paid off exactly after 2 years. A = where R=1.06
Transcribed Image Text:At the beginning of a month, a customer owes a credit card company $8480. In the
middle of the month, the customer repays $A, where A < $8480, and at the end of the
month the company adds interest at a rate of 6% of the outstanding debt. This process
is repeated with the customer continuing to pay off the same amount, $A, each month.
(a) Find the value of A for which the customer still owes $8480 at the start of each
month.
(b) If A = 1000, calculate the amount owing at the end of the eighth month.
(c) Show that the value of A for which the whole amount owing is exactly paid off after
the nth payment is given by
8480R"-'(R– 1)
A =
where R=1.06
R" – 1
(d) Find the value of A if the debt is to be paid off exactly after 2 years, ctivate Windows
Transcribed Image Text:(0) the number or years Tequired before the capital stock excecas ST00 U0V.
5.
The equations defining a general model of two trading countries are given by
Y, = C, +I# + X; - M,
G=a,Y; + b,
Y, = C, + I% + X, – M2
C, = a,Y, + bz
M = m,Y;
M, = m;Y,
where 0< a; < 1, b, > 0 and 0< m, < I (i = 1, 2). Express this system in matrix form and
use Cramer's rule to solve this system for Y. Write down the multiplier for Y, due to
changes in I and hence give a general description of the effect on the national income
of one country due to a change in investment in the other.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Contemporary Abstract AlgebraAlgebraISBN:9781305657960Author:Joseph GallianPublisher:Cengage Learning
Linear Algebra: A Modern IntroductionAlgebraISBN:9781285463247Author:David PoolePublisher:Cengage Learning
Algebra And Trigonometry (11th Edition)AlgebraISBN:9780135163078Author:Michael SullivanPublisher:PEARSON
Introduction to Linear Algebra, Fifth EditionAlgebraISBN:9780980232776Author:Gilbert StrangPublisher:Wellesley-Cambridge Press
College Algebra (Collegiate Math)AlgebraISBN:9780077836344Author:Julie Miller, Donna GerkenPublisher:McGraw-Hill Education