If you open a savings account that earns 6.5% simple interest per year, what is the minimum num- ber of years you must wait to triple your balance? Suppose you open another account that earns 6% interest compounded yearly. How many years will it take now to triple your balance?

Explanation:

To triple your balance( principal ) using simple interest rate

A = 3 * P = 3P (equation 1)

A = new amount

p = principal

T = x

R = interest rate = 6.5%

to calculate the interest rate =  ( equation 2 )

note A = principal + interest rate

        A = p +   therefore A = p ( 1 + ) ( equation 3 )

from (equation 1)  A = 3P substitute this into (equation 3)

equation 3 becomes: 3P = P ( 1 + ) divide both sides of the equation by P

equation becomes: 3 = ( 1 + ) therefore 3 =  1 + 0.065T

hence T = = = 30.76 ≈ 31 years

To triple your balance using the compound interest

R = 6%

A = 3P

using the compound interest formula

A = P ( 1 + )^t

3P = P ( 1 + )^t

3 = ( 1.06 )^t

t = = 18.85 years ≈ 19 years

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation:

the answer would be price fixing, hope it