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anonymous
 5 years ago
Pls Help!! Use the formula B=P(1+(r/n))nt which is used to calculate the final balance of an investment or a loan after being compounded. Following is a list of what each variable represents:
B = the final balance
P = the principal
r = the annual percentage rate
t = the time in years in which the principal is compounded
n = the number of times the principal is compounded in a year
Raul invests $40,000 in an account that is compounded annually. If, after two years, his balance is $45,796, what was the interest rate of the account?
anonymous
 5 years ago
Pls Help!! Use the formula B=P(1+(r/n))nt which is used to calculate the final balance of an investment or a loan after being compounded. Following is a list of what each variable represents: B = the final balance P = the principal r = the annual percentage rate t = the time in years in which the principal is compounded n = the number of times the principal is compounded in a year Raul invests $40,000 in an account that is compounded annually. If, after two years, his balance is $45,796, what was the interest rate of the account?

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anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0Are u helping me ...thank you , thank you , thank you

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0yeah  sorry popcorn  i'll be back in about 5 minutes

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0hi  you formula is incorrect. It should be B=P(1+(r/n))^nt  nt is an exponent so: 45796 = 40000(1 + r)^2 n=1 once a year (1+r)^2 = 45796 / 40000 = 1.1449 taking logs 2 ln(1+r) = ln 1.1449 ln (1+r) = ln 1.1449 / 2 1+r = 1.07 r = .07 = 7 % annual rate

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0it means using the logarithm of the expression  its useful if the x is in the power live 2^x. so if got 2^x = 3.2 we can write ln 2^x = ln 3.2 so x ln2 = ln 3.2 and then x =ln3.2/ln2. hey  i could have done this another way  i could have expanded (1+r)^2 and solved for x.  but the log way is ok

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0k i think my level is at the expansion level not log...would you be able to show me the other way??

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0ok (1+r)^2 = 1.1.449  hey  i've found another way we can take the square root of both sides 1 + r = sq rt 1.1449 =1.07 r = 1.07  1 = .07 I hope I haven't confused you with all these alternatives. I can't understand why I didn't see this easy way before!!

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0got it thanks...if you are bored I have two other questions out there ;)

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0sorry popcorn its late here in uk and i've got an early start in the morning we are travelling to London to see my soccer team (Swansea) play a big game. I'll be here tomorrow evening.

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0works for me...have fun
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