The national wealth of a country increases by 4% of its value at the beginning o
ID: 3116458 • Letter: T
Question
The national wealth of a country increases by 4% of its value at the beginning of every year. Find the national wealth of the country in 1985, if it was estimated at $3.125 * 10^12 in 1983
The price of a scooter depreciates by 2% of its value at the beginning of each year. Find the sale value of the scooter after 3 years, if its present sale value is $12000
The population of Andhra Pradesh was 5.4 * 10^7 in 1988. If the population was growing at a constant rate of 2.4% per annum, what was the population in 2008 A.D ( Given that (1.024)^20 = 1.60694)
Explanation / Answer
the national wealth increases its value by 4%
so we can write the model as
P = 3.125*10^12 ( 1.04)^n
where n is number of years from 1983
to determine national wealth in 1985
plug n = 2
P = 3.125*10^12 ( 1.04)^2
P = 3.38*10^12
so value in 1985 = 3.38*10^12