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anonymous

  • 5 years ago

ok walk me through this please: Find the accumulated amount at the end of 10 years for a principal of $4500 Compounded quarterly at a yearly interest rate of 3%.

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  1. anonymous
    • 5 years ago
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    formula is \[4500(1+\frac{.03}{4})^{4\times 10}\]

  2. anonymous
    • 5 years ago
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    which formula is that exactly

  3. anonymous
    • 5 years ago
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    clear what i put where and why?

  4. anonymous
    • 5 years ago
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    ok slowly. principle is 4500 interest is 3%=.03 number of compounding periods per year is 4 number of years is 10

  5. amistre64
    • 5 years ago
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    .03 is the annual rate; but its determined 4 times a year so it gets divided by 4.

  6. anonymous
    • 5 years ago
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    general formula is \[P(1+\frac{r}{n})^{ny}\]

  7. anonymous
    • 5 years ago
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    A=P(1+r)^n

  8. amistre64
    • 5 years ago
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    since the time span is now 4 times ayear; that means that for every year that goes by we have a factor of 4; so ^4t`

  9. anonymous
    • 5 years ago
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    ok is that that formula R=Pi/1-(1+i)^-n

  10. anonymous
    • 5 years ago
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    where r is the interest rate (as a decimal) P is the principle n is the number of compounding periods per year and Y is the number of years

  11. anonymous
    • 5 years ago
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  12. anonymous
    • 5 years ago
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    this is compounded quarterly so you use n = 4

  13. anonymous
    • 5 years ago
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    i get \[4500(1+\frac{.03}{4})^{40}=6067.57\] rounded

  14. anonymous
    • 5 years ago
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    ok ty

  15. anonymous
    • 5 years ago
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    welcome

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