SOLUTION: a certain sum of money is invested in a business. each year this investment earns 1.5 times as much as in the preceding year. if the investment earned a total of $19,500 in 4 years
Algebra ->
Customizable Word Problem Solvers
-> Finance
-> SOLUTION: a certain sum of money is invested in a business. each year this investment earns 1.5 times as much as in the preceding year. if the investment earned a total of $19,500 in 4 years
Log On
Question 427900: a certain sum of money is invested in a business. each year this investment earns 1.5 times as much as in the preceding year. if the investment earned a total of $19,500 in 4 years, how much did it earn in the fourth year? Answer by jorel1380(3719) (Show Source):
You can put this solution on YOUR website! If X number of dollars are invested with a return of 150% (1.5 times the principal), then our equation for the four years is:
X+1.5X+2.25X+3.375X+5.0625X=X+19,500
12.1875X=19500
X=1600
So our principal was $1600. Our interest for the fourth year was 5.0625 times $1600 or $8100.
