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Linda invests $5000 into an account that pays 11% compounded quarterly. How much interest will she get after 5 years?
 3 years ago
 3 years ago
Linda invests $5000 into an account that pays 11% compounded quarterly. How much interest will she get after 5 years?
 3 years ago
 3 years ago

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nowheremanBest ResponseYou've already chosen the best response.0
Is her gain reinvested instantly or paid out?
 3 years ago

00kirstenBest ResponseYou've already chosen the best response.0
i dont no. thats the exact question. i copied n pasted it
 3 years ago

nowheremanBest ResponseYou've already chosen the best response.0
http://en.wikipedia.org/wiki/Compound_interest It is revinvested. That means you have to calculate \[5000\cdot 1.11^{4\cdot 5}\]
 3 years ago

00kirstenBest ResponseYou've already chosen the best response.0
wait how do i write 11% ??? 0.11 or 1.11 ??? ... and i dont no how to do that equation on a calculator
 3 years ago

BecomeMyFan=DBest ResponseYou've already chosen the best response.0
the final answer is 35311.56$
 3 years ago

BecomeMyFan=DBest ResponseYou've already chosen the best response.0
you do it like this:
 3 years ago

nowheremanBest ResponseYou've already chosen the best response.0
11% = 0.11 but the original sum remains there too, so you have 1 + 11% = 1.11
 3 years ago

BecomeMyFan=DBest ResponseYou've already chosen the best response.0
\[5000(1+(11/100))^{5*4}\]
 3 years ago

00kirstenBest ResponseYou've already chosen the best response.0
this is how i wrote it .. .A = 5000 (1 = 0.11/4) 4x5
 3 years ago

BecomeMyFan=DBest ResponseYou've already chosen the best response.0
no, that is wrong
 3 years ago

00kirstenBest ResponseYou've already chosen the best response.0
i cant seem to figure that out on a calculator, u told me the answer but i cant get it on the calculator
 3 years ago

nowheremanBest ResponseYou've already chosen the best response.0
Is it 11% anually or quarterly?
 3 years ago

00kirstenBest ResponseYou've already chosen the best response.0
i meant to write 1 + 0.11
 3 years ago

BecomeMyFan=DBest ResponseYou've already chosen the best response.0
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
 3 years ago

nowheremanBest ResponseYou've already chosen the best response.0
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"
 3 years ago

00kirstenBest ResponseYou've already chosen the best response.0
umm im doing it on my cellphone calculator so no
 3 years ago

BecomeMyFan=DBest ResponseYou've already chosen the best response.0
in a calculator it would look like A=P(1+rate)^(numberofyears∗timezperyear)
 3 years ago

BecomeMyFan=DBest ResponseYou've already chosen the best response.0
damn, you should get a casio fx series
 3 years ago

nowheremanBest ResponseYou've already chosen the best response.0
you can also do it on google or wolframalpha
 3 years ago

BecomeMyFan=DBest ResponseYou've already chosen the best response.0
or even better this: http://cgi.ebay.com/BrandNewCasioFX991ESScientificCalculator/260592979882?pt=Calculators&hash=item3cac8d4faa
 3 years ago

00kirstenBest ResponseYou've already chosen the best response.0
sooo how do i write down the equation
 3 years ago

BecomeMyFan=DBest ResponseYou've already chosen the best response.0
it can solve integrals, derivatives, logarithms, anything
 3 years ago

BecomeMyFan=DBest ResponseYou've already chosen the best response.0
like this: A = 5000(1+(11/100))^5∗4
 3 years ago

BecomeMyFan=DBest ResponseYou've already chosen the best response.0
which is: = 5000(1.11)^20
 3 years ago

BecomeMyFan=DBest ResponseYou've already chosen the best response.0
which is A = 5000 * 8.062311536 = 40311.55768 so now to get the compound interest subtract the 5000 from the answer, CI=40311.557685000 =35311.56
 3 years ago

00kirstenBest ResponseYou've already chosen the best response.0
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)
 3 years ago

00kirstenBest ResponseYou've already chosen the best response.0
ok i got it right thx :)
 3 years ago

BecomeMyFan=DBest ResponseYou've already chosen the best response.0
you just divide 72 by the percentage
 3 years ago

00kirstenBest ResponseYou've already chosen the best response.0
wat does it mean tho by give units of time (days,weeks, months, years???
 3 years ago

BecomeMyFan=DBest ResponseYou've already chosen the best response.0
or, if the question asks you how long it takes for the money to halve, divide 72 by percentage :)
 3 years ago

BecomeMyFan=DBest ResponseYou've already chosen the best response.0
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
 3 years ago

BecomeMyFan=DBest ResponseYou've already chosen the best response.0
get it? but most of the times the answer is in years, so dont worry
 3 years ago

00kirstenBest ResponseYou've already chosen the best response.0
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
 3 years ago

BecomeMyFan=DBest ResponseYou've already chosen the best response.0
6. is right 7. is right
 3 years ago

00kirstenBest ResponseYou've already chosen the best response.0
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
 3 years ago

00kirstenBest ResponseYou've already chosen the best response.0
i think like 3 diff people gave me different answers, so im so confused!!
 3 years ago
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