You placed a bet on chicago for this year's super bowl. to cover your loss, you agree to pay your bookie $612.52 in three years. assuming 7% interest, how much was your total bet? (round you answer to zero decimal places)
Answers
Answered by
0
Betting involves taking a risk of losing your money in case you lose.
Whatever is accumulated in the bookie at a compound interest rate to cover the lose incurred is equivalent to the money put in the bet.
From the information given above we can calculate the accumulated money given the principle and the interest rate :
CALCULATIONS :
Let principle =C=$612.52
Compound interest rate=i=7%
The compounded accumulation formulae is: C(1+i)^n where n is the period of investment.
Substituting we get :
612.52 × (1.07)^3 =612.52 × 1.2250=$750.36
Rounding to zero decimal place we get :
$750 => this is the total bet.
Whatever is accumulated in the bookie at a compound interest rate to cover the lose incurred is equivalent to the money put in the bet.
From the information given above we can calculate the accumulated money given the principle and the interest rate :
CALCULATIONS :
Let principle =C=$612.52
Compound interest rate=i=7%
The compounded accumulation formulae is: C(1+i)^n where n is the period of investment.
Substituting we get :
612.52 × (1.07)^3 =612.52 × 1.2250=$750.36
Rounding to zero decimal place we get :
$750 => this is the total bet.
Similar questions