Question

Marcel invests $2500 for 3 years at a rate of 1.6% per year simple interest.Jacques invests $2000 for 3 years at a rate of x% per year compound interest.At the end of the 3 years Marcel and Jacques receive the same amount of interest.Calculate the value of x correct to 3 significant figures pls show workings this in exponential growth and decay

Answer 1

Answer:

Marcel's P = 2500, T = 3 years, R = 1.6%

SI = PRT/100 = (2500 × 3 × 1.6)/100 = 120

Jacques's P = 2000, T = 3 years, R = x%

CI = P(1 + R/100)^T - P

CI = 2000 (1 + x/100)^3 - 2000 = SI of Marcel

So,

2000 (1 + x/100)^3 - 2000 = 120

(1 +x/100)^3 = 2120/2000

x = 1.96