Q:

(CRESPO, 2002) What is the deadline for an investment of R$200,000.00, at a simple interest rate of 2.5% per month, to yield an amount of R$240,000.00?

Accepted Solution

A:
To calculate the deadline for the investment, we can use the formula: Deadline = log(P / A) / log(1 + r) Where: P = $240,000 (the principal amount) A = $200,000 (the amount to be yielded) r = 0.025 (the monthly interest rate) Deadline = log($240,000 / $200,000) / log(1 + 0.025) Calculating the deadline, we get: Deadline β‰ˆ 1.25 months So, the deadline for the investment is approximately 1.25 months.