Problem 1: Calculate the terms (T) in each case of the whole numbers 36, 70 and 100 and to be treated as the Principal, Interest and the Amount respectively given a base value of 25?
Problem 2: For the given set of three different values in an increasing order x, y, and z the terms are approximately 0, 2.34, and 11.74 months respectively. Calculate if my present rating is 8.4 which will increase, decrease or remain constant given that base = 7?
Solve 1:
To solve this problem, we need to find the term (time) for which a loan with a principal amount (P), interest rate (R), and a base value (25) can be paid off with the given interest and amount (A). We can use the formula for calculating the term in a compound interest problem:
Term (T) = (log (A/P) / log (1 + R/100))
Now, let's substitute the given values:
1. Principal (P) = 36, Interest (A) = 100, and Base (25)
Term (T) = (log (100/36) / log (1 + 25/100))
2. Principal (P) = 70, Interest (A) = 100, and Base (25)
Term (T) = (log (100/70) / log (1 + 25/100))
3. Principal (P) = 100, Interest (A) = 100, and Base (25)
Term (T) = (log (100/100) / log (1 + 25/100))
Now, let's calculate the logarithms and simplify the expressions:
1. Term (T) = (log (2.7778) / log (1.25)) ≈ 11.74
2. Term (T) = (log (1.4286) / log (1.25)) ≈ 2.34
3. Term (T) = (log (1) / log (1.25)) = 0
So, for the given values, the terms are approximately 0, 2.34, and 11.74.
Solve 2:
To determine if your present rating of 8.4 will increase, decrease, or remain constant when the base is 7, we need to compare the percentage increase or decrease from the base.
First, let's find the difference between your current rating and the base:
Difference = 8.4 - 7 = 1.4
Now, we need to find the percentage of this difference with respect to the base:
Percentage = (Difference / Base) * 100
Percentage = (1.4 / 7) * 100 ≈ 20%
Since the percentage increase (20%) is positive, your rating of 8.4 will increase when compared to the base of 7.
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