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00kirsten

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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  1. nowhereman
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    Is her gain reinvested instantly or paid out?

    • 3 years ago
  2. 00kirsten
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    i dont no. thats the exact question. i copied n pasted it

    • 3 years ago
  3. nowhereman
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    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
  4. 00kirsten
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    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
  5. BecomeMyFan=D
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    the final answer is 35311.56$

    • 3 years ago
  6. BecomeMyFan=D
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    you do it like this:

    • 3 years ago
  7. nowhereman
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    11% = 0.11 but the original sum remains there too, so you have 1 + 11% = 1.11

    • 3 years ago
  8. BecomeMyFan=D
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    \[5000(1+(11/100))^{5*4}\]

    • 3 years ago
  9. BecomeMyFan=D
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    got it?

    • 3 years ago
  10. 00kirsten
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    this is how i wrote it .. .A = 5000 (1 = 0.11/4) 4x5

    • 3 years ago
  11. BecomeMyFan=D
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    no, that is wrong

    • 3 years ago
  12. 00kirsten
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    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
  13. nowhereman
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    Is it 11% anually or quarterly?

    • 3 years ago
  14. 00kirsten
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    i meant to write 1 + 0.11

    • 3 years ago
  15. 00kirsten
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    quarterely

    • 3 years ago
  16. BecomeMyFan=D
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    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
  17. nowhereman
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    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
  18. 00kirsten
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    umm im doing it on my cellphone calculator so no

    • 3 years ago
  19. BecomeMyFan=D
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    in a calculator it would look like A=P(1+rate)^(numberofyears∗timezperyear)

    • 3 years ago
  20. BecomeMyFan=D
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    damn, you should get a casio fx series

    • 3 years ago
  21. nowhereman
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    you can also do it on google or wolframalpha

    • 3 years ago
  22. BecomeMyFan=D
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    or even better this: http://cgi.ebay.com/Brand-New-Casio-FX-991ES-Scientific-Calculator-/260592979882?pt=Calculators&hash=item3cac8d4faa

    • 3 years ago
  23. 00kirsten
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    sooo how do i write down the equation

    • 3 years ago
  24. BecomeMyFan=D
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    it can solve integrals, derivatives, logarithms, anything

    • 3 years ago
  25. BecomeMyFan=D
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    like this: A = 5000(1+(11/100))^5∗4

    • 3 years ago
  26. BecomeMyFan=D
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    which is: = 5000(1.11)^20

    • 3 years ago
  27. BecomeMyFan=D
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    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

    • 3 years ago
  28. 00kirsten
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    ok thank uu

    • 3 years ago
  29. 00kirsten
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    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
  30. BecomeMyFan=D
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    24 years

    • 3 years ago
  31. 00kirsten
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    ok i got it right thx :)

    • 3 years ago
  32. BecomeMyFan=D
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    you just divide 72 by the percentage

    • 3 years ago
  33. 00kirsten
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    wat does it mean tho by give units of time (days,weeks, months, years???

    • 3 years ago
  34. BecomeMyFan=D
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    or, if the question asks you how long it takes for the money to halve, divide 72 by percentage :)

    • 3 years ago
  35. BecomeMyFan=D
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    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
  36. BecomeMyFan=D
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    get it? but most of the times the answer is in years, so dont worry

    • 3 years ago
  37. 00kirsten
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    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
  38. BecomeMyFan=D
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    6. is right 7. is right

    • 3 years ago
  39. 00kirsten
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    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
  40. 00kirsten
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    i think like 3 diff people gave me different answers, so im so confused!!

    • 3 years ago
  41. BecomeMyFan=D
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    thats right

    • 3 years ago
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