anonymous
  • anonymous
Linda invests $5000 into an account that pays 11% compounded quarterly. How much interest will she get after 5 years?
Mathematics
  • Stacey Warren - Expert brainly.com
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SOLVED
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schrodinger
  • schrodinger
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nowhereman
  • nowhereman
Is her gain reinvested instantly or paid out?
anonymous
  • anonymous
i dont no. thats the exact question. i copied n pasted it
nowhereman
  • nowhereman
http://en.wikipedia.org/wiki/Compound_interest It is revinvested. That means you have to calculate \[5000\cdot 1.11^{4\cdot 5}\]

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anonymous
  • anonymous
wait how do i write 11% ??? 0.11 or 1.11 ??? ... and i dont no how to do that equation on a calculator
anonymous
  • anonymous
the final answer is 35311.56$
anonymous
  • anonymous
you do it like this:
nowhereman
  • nowhereman
11% = 0.11 but the original sum remains there too, so you have 1 + 11% = 1.11
anonymous
  • anonymous
\[5000(1+(11/100))^{5*4}\]
anonymous
  • anonymous
got it?
anonymous
  • anonymous
this is how i wrote it .. .A = 5000 (1 = 0.11/4) 4x5
anonymous
  • anonymous
no, that is wrong
anonymous
  • anonymous
i cant seem to figure that out on a calculator, u told me the answer but i cant get it on the calculator
nowhereman
  • nowhereman
Is it 11% anually or quarterly?
anonymous
  • anonymous
i meant to write 1 + 0.11
anonymous
  • anonymous
quarterely
anonymous
  • anonymous
ok, the full formula for compound interest is this \[A=P(1+rate)^{number of years * timez per year}\] so the timezperyear is 4 in your case as there are 4 quoters in a year
nowhereman
  • nowhereman
Ok, so that /4 was a mistake of yours. Well, what kind of functions does your calculator have? Is there a button that says "a^b" or maybe "x^y" ? Or otherwise there maybe buttons for "exp" and "ln"
anonymous
  • anonymous
umm im doing it on my cellphone calculator so no
anonymous
  • anonymous
in a calculator it would look like A=P(1+rate)^(numberofyears∗timezperyear)
anonymous
  • anonymous
damn, you should get a casio fx series
nowhereman
  • nowhereman
you can also do it on google or wolframalpha
anonymous
  • anonymous
http://cgi.ebay.com/Casio-FX-82MS-Scientific-2-Line-Display-Calculator-82ms-/120706498016?pt=Calculators&hash=item1c1aaafde0
anonymous
  • anonymous
or even better this: http://cgi.ebay.com/Brand-New-Casio-FX-991ES-Scientific-Calculator-/260592979882?pt=Calculators&hash=item3cac8d4faa
anonymous
  • anonymous
sooo how do i write down the equation
anonymous
  • anonymous
it can solve integrals, derivatives, logarithms, anything
nowhereman
  • nowhereman
http://www.google.com/#hl=en&sugexp=ldymls&xhr=t&q=5000*(1%2B0.11)^(4*5)&cp=19&pf=p&sclient=psy&aq=f&aqi=&aql=&oq=5000*(1%2B0.11)^(4*5)&pbx=1&bav=on.2,or.r_gc.r_pw.&fp=c99decee79d1fe4a
anonymous
  • anonymous
like this: A = 5000(1+(11/100))^5∗4
anonymous
  • anonymous
which is: = 5000(1.11)^20
anonymous
  • anonymous
which is A = 5000 * 8.062311536 = 40311.55768 so now to get the compound interest subtract the 5000 from the answer, CI=40311.55768-5000 =35311.56
anonymous
  • anonymous
ok thank uu
anonymous
  • anonymous
one more?? Using the rule of 72, how long will it take to double your money if you invest in an account earning 3% interest? Give units of time (days, weeks, months, or years)
anonymous
  • anonymous
24 years
anonymous
  • anonymous
ok i got it right thx :)
anonymous
  • anonymous
you just divide 72 by the percentage
anonymous
  • anonymous
wat does it mean tho by give units of time (days,weeks, months, years???
anonymous
  • anonymous
or, if the question asks you how long it takes for the money to halve, divide 72 by percentage :)
anonymous
  • anonymous
it is there because the answer is not always in years, for example, if a question asks you how long it takes to double your money if you invest in an account earning 80% interest. It is IMPOSSIBLE in real life, but some questons might ask that, so, 72/80=0.9, which is 0.9 year, which is 365/10*9=328.5=329days
anonymous
  • anonymous
get it? but most of the times the answer is in years, so dont worry
anonymous
  • anonymous
can you see if these are right for me please. 6. Find the simple interest on $500 for 3 years at 7%. is it like this 500 x 0.07 x 3 = $105 7. Find the simple interest on $800 at 8.75% for 100 days. is it like this $800 x .0875 x 100/365 = $19.18
anonymous
  • anonymous
6. is right 7. is right
anonymous
  • anonymous
sweet thanks and is this one right ... (last one) How much money would you have to invest to make $300 within 2 years if the interest rate was 4.5%? is the answer $3333.33
anonymous
  • anonymous
i think like 3 diff people gave me different answers, so im so confused!!
anonymous
  • anonymous
thats right

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