1. Compare the final amounts at the end of a year of$100 invested at 5% in two ways: simple interest andcontinuous compound interest.2. A radioactive substance is known to have a half-life of78 years. Calculate the number of years it would takefor this substance to decrease to 10% its originalamount.3. A city has been found to have a population that triplesevery four years. If the city's population is one millionin 2010, how many people were there in 1990?

Note: Since more than one question is posted. I Provide a solution to question number 1. Kindly…

Answered: 1. Compare the final amounts at the end…

1. Compare the final amounts at the end of a year of $100 invested at 5% in two ways: simple interest and continuous compound interest.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 18EA: Consolidated Aluminum is considering the purchase of a new machine that will cost $308,000 and...

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Concept explainers

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.

Question

1. Compare the final amounts at the end of a year of
$100 invested at 5% in two ways: simple interest and
continuous compound interest.
2. A radioactive substance is known to have a half-life of
78 years. Calculate the number of years it would take
for this substance to decrease to 10% its original
amount.
3. A city has been found to have a population that triples
every four years. If the city's population is one million
in 2010, how many people were there in 1990?

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