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PSAT 1.2 Math Diagnostic 240 Views


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Description:

PSAT 1.2 Math Diagnostic. After two years, how much money will Eduardo have?


Transcript

00:00

Thank you We sneak And here's your shmoop du jour

00:05

brought to you by investment funds We love them and

00:09

we're sure the feeling is mutual All right eduardo has

00:13

eighty five hundred bucks to invest invest seventy five percent

00:16

of his money and fund a and twenty five percent

00:17

was money in fund be fund a earns three point

00:21

five percent interest annually while fund be earns four point

00:25

two percent interest annually after two years How much money

00:29

will eduardo have and hear the potential Answer what I

00:33

kind of heard that interest income is your money So

00:37

assuming eduardo has left his investment earnings untouched hasn't blown

00:41

it all on star wars memorabilia We need to decide

00:44

how much dough he'll have in his two funds by

00:47

the end of two years Well eduardo would much rather

00:50

be playing with his stormtrooper action figures than doing the

00:53

math themselves so well the onus is on us Well

00:56

it's a slow day we don't have much else going

00:58

on First things first How much is eduardo putting into

01:01

each fun Well we're told he has eighty five hundred

01:03

bucks total and we put seventy five per cent of

01:05

that money to fund A twenty five percent into fund

01:07

be so here we just have a couple of simple

01:10

multiplication problems We can convert our percentages two decimals to

01:13

make them easier to work with So seventy five percent

01:16

becomes point seven five and twenty five percent becomes point

01:19

two five then we multiply each by the eighty five

01:22

hundred bucks Well looks like he put six thousand three

01:25

or seventy five dollars into fund a and two thousand

01:28

one hundred twenty five dollars into fund Be way can

01:31

add those two together to double check our work if

01:33

we're worried And yet six three seven five plus two

01:36

one to five equals eighty five hundred So we're golden

01:40

now for each fund we need to determine the interest

01:42

Fortunately there's an app for that they're well formula Anyway

01:46

i equals p arty that's interest equals the principal multiplied

01:51

by the rate multiplied by the time now he just

01:53

plug in chuck so for fun day our interest will

01:56

equal six thousand three hundred seventy five our principal times

02:00

A raid of three point five percent which is point

02:02

o three five and decimal form Don't forget that o

02:05

times to the number Of years eduardo's been accumulating interest

02:08

on his initial investment way come up with four hundred

02:11

forty six dollars and twenty five cents in interest accrued

02:14

Add that to the original six thousand three hundred seventy

02:17

five investment and fund a is now worth six thousand

02:20

eight hundred twenty one dollars and twenty five cents Now

02:23

the same spiel for fun be the principal is two

02:26

thousand one hundred twenty five bucks times a rate of

02:28

four point two percent or point zero or two times

02:32

to well we get one hundred seventy eight bucks and

02:34

fifty cents and interest accrued lost The two thousand one

02:37

hundred twenty five dollar investment and fund b is now

02:40

worth two thousand three hundred three dollars and fifty cents

02:43

Who it's grand total time Can we get a drum

02:46

roll please Adding together the six thousand eight hundred twenty

02:49

one point twenty five from fund eh and the two

02:53

thousand three hundred three point fifty from fund be waken

02:58

See that eduardo's initial investment of eighty five hundred dollars

03:00

has magically in mystically turned into nine thousand one hundred

03:05

twenty four dollars seventy five cents whom that'll buy you

03:08

a ton of nab Billion nerve knockers So yeah answer

03:11

C is the one we want at ease Eduardo Good

03:14

luck bringing down the galactic empire That extra six hundred 00:03:17.613 --> [endTime] bucks and change really help

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