Rounding this answer to the nearest tenth.

  • Thread starter cjp88
  • Start date
In summary, to turn $1000 into $1500 in 5 years with interest compounded annually, an interest rate of 8.4% is required. For monthly compounding, the interest rate needed is 0.7%. The formula used is (A/P)^1/n - 1 = i (interest), where A is the final amount, P is the initial amount, n is the number of periods, and i is the interest rate.
  • #1
cjp88
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Homework Statement



1. What interest rate is required to turn $1000 into $1500 in 5 years if the
interest is compounded:
a) annually
b) monthly
(round your answer to the nearest tenth of a percent)

Homework Equations



I'm using the formula: (A/P)^1/n - 1 = i (interest)

The Attempt at a Solution



My question here is how am I supposed to answer this with the nearest tenth of a percent because of the answer.

1500/1000 = 1.5
1.5^(1/5) = 1.084471771
1.084471771 – 1 = 0.084471771

This could be 0.1

1500/1000 = 1.5
1.5^(1/60) = 1.006780637
1.006780637 – 1 = 0.006780637

Rounding to the nearest tenth of a percent would give you 0.0

The answers just don't look "right" to me.
 
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  • #2
cjp88 said:

Homework Statement



1. What interest rate is required to turn $1000 into $1500 in 5 years if the
interest is compounded:
a) annually
b) monthly
(round your answer to the nearest tenth of a percent)


Homework Equations



I'm using the formula: (A/P)^1/n - 1 = i (interest)

The Attempt at a Solution



My question here is how am I supposed to answer this with the nearest tenth of a percent because of the answer.

1500/1000 = 1.5
1.5^(1/5) = 1.084471771
1.084471771 – 1 = 0.084471771

This could be 0.1
No. Remember that per cent means "per hundred" so a given percent corresponds to a decimal number equal to the percent divided by 100. To go from the percent to the number, multiply by 100. The decimal number is 0.084471771 which rounds, to the nearest 10th, to 0.1 but the percentage is 8.4471771% which rounds, to the nearest 10th percent, to 8.4%

1500/1000 = 1.5
1.5^(1/60) = 1.006780637
1.006780637 – 1 = 0.006780637

Rounding to the nearest tenth of a percent would give you 0.0

The answers just don't look "right" to me.
They shouldn't look right! That is 0.6780657% which is, to the nearest 10th percent, 0.7%.
 
  • #3
Blah, I see now. I left it in decimal form not as a percent. Thanks for the help!
 

1. How do you round a number to the nearest tenth?

To round a number to the nearest tenth, look at the digit in the hundredths place. If it is 5 or greater, round up the digit in the tenths place. If it is less than 5, keep the digit in the tenths place the same.

2. Can you give an example of rounding to the nearest tenth?

Sure! Let's say we have the number 3.86. The digit in the hundredths place is 6, so we will round up the digit in the tenths place. The final rounded number is 3.9.

3. Is rounding to the nearest tenth the same as rounding to one decimal place?

Yes, rounding to the nearest tenth and rounding to one decimal place are essentially the same thing. Both methods involve keeping one digit after the decimal point.

4. What happens if the digit in the hundredths place is exactly 5 when rounding to the nearest tenth?

In this case, you will round up the digit in the tenths place if it is an odd number, and round down if it is an even number. For example, if we have the number 2.45, the digit in the hundredths place is 5. Since the digit in the tenths place (4) is even, we will round down to 2.4.

5. Why is it important to round numbers to the nearest tenth?

Rounding to the nearest tenth can make numbers easier to work with and understand. It can also help with estimation and making quick calculations. In some cases, rounding to the nearest tenth may also be required for accuracy, especially in scientific and mathematical calculations.

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