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anonymous
 5 years ago
how much money must be deposited in an account paying 7.25% annual interest, compounded quarterly, to have a balance of $1000 after 10 years?
anonymous
 5 years ago
how much money must be deposited in an account paying 7.25% annual interest, compounded quarterly, to have a balance of $1000 after 10 years?

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dumbcow
 5 years ago
Best ResponseYou've already chosen the best response.0General formula: B = D(1+i/n)^nt i = int rate n = num of times per year interest credited t=num years

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0what do you mean b=d?

dumbcow
 5 years ago
Best ResponseYou've already chosen the best response.0b = ending balance d = initial deposit

dumbcow
 5 years ago
Best ResponseYou've already chosen the best response.0ok lets say you deposit $100 and earn 50% 50% of 100 is 50 so your balance at end of year is 150 so 150=100*(1+0.5)

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0Compound Formula for calculating compound interest: Where, \[A=P(1+r/t)^{nt}\] A = final amount P = principal amount (initial investment) r = annual nominal interest rate (as a decimal) n = number of times the interest is compounded per year t = number of years

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0so just plug in the 1000, the interest rate .0725, number of years and compounds per year

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0i do not know how i would set it up like to plug it in or anything

dumbcow
 5 years ago
Best ResponseYou've already chosen the best response.01000=D*(1+.0725/4)^40 solve for D

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0\[1000/(1+.0725/4)^{40}=P\] That is what you end up with.

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0There is no t to solve for

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0You already know t, its 10 years

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0It's already solved, you just have to plug it into a calculator

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0or do it by hand if you want to.

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.01000/(40725/40000)^40 = 487.48
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