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At a compound interest rate of $5 \%$ per annum, the accumulated value 3000 has the same accumulated value as deposits of 5X and 3X made at time t=0 and t=3, respectively. Find the value of 10X.

This is what I did: $5X (1.05)^0 = 3000 \Rightarrow X = 600$ $3X (1.05)^3=3000 \Rightarrow X= 863.84$

As you can see, they are not the same. Am I doing the right thing??? What should I do?

Ami78
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  • I think you should interpret it this way: A sum of $5x$ is deposited in the beginning of the year ($t=0$). After that, an amount of $3x$ is deposited on the same account after three years ($t=3$). Then both of them grow interest on the account. But one question remains: In the beginning, the sum of $3~000$ was mentioned. The timely relationship between these two is not clear. How long is the account with the deposits supposed to grow interest, in total? – Matti P. Feb 06 '19 at 10:13
  • The problem doesn't mention anything about how long the account grow interest. But thank you for your input – Ami78 Feb 06 '19 at 10:42

1 Answers1

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$3X+5X(1.05)^3 = 3000$

$X(3+5(1.05)^3) = 3000$

Find X from the above and then find 10X

Satish Ramanathan
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