(a) On Sam's first birthday celebration, his grandfather deposited an amount of $1,000.00 in a bank at compound interest of 4% per annum.
Find how much is in the account if Sam is 4 years old.
In the diagram, ABCD are points on the circle with centre O. If \(|AB| = |BC|\) and \(\angle ADC = 50^\circ\), find \(\angle BAD\).
(a) Compound interest. \(\$1000\) at \(4\%\) per annum, from the 1st birthday until age 4 is 3 years of growth (multiplier \(1.04\) each year):
End of yr 2: \(\frac{104}{100}\times1000=\$1040.00\); yr 3: \(\frac{104}{100}\times1040=\$1081.60\); yr 4: \(\frac{104}{100}\times1081.60=\$1124.86\).
\[A=1000\Big(1+\tfrac{4}{100}\Big)^{3}=1000(1.04)^{3}=\mathbf{\$1124.86}.\]
(b) Circle geometry. \(A,B,C,D\) lie on a circle centre \(O\), \(|AB|=|BC|\), \(\angle ADC=50^{\circ}\), and \(AC\) subtends \(\angle ADC\) with \(\angle ACD=90^{\circ}\) (angle in a semicircle, \(AD\) a diameter).
In \(\triangle ACD\): \(\angle CAD=180^{\circ}-50^{\circ}-90^{\circ}=40^{\circ}\).
\(ABCD\) is cyclic, so \(\angle ABC=180^{\circ}-\angle ADC=130^{\circ}\). Since \(|AB|=|BC|\), \(\triangle ABC\) is isosceles with \(\angle BAC=\angle BCA\):
\[2\angle BAC+130^{\circ}=180^{\circ}\Rightarrow\angle BAC=25^{\circ}.\]
\[\angle BAD=\angle CAD+\angle BAC=40^{\circ}+25^{\circ}=\mathbf{65^{\circ}}.\]