Got Homework?
Connect with other students for help. It's a free community.
Here's the question you clicked on:
 0 viewing
jenni_fowler
Group Title
find the amount of money in the bank account given the following conditions:
initial deposit= $5000, annual rate= 3%, time= 2 years
 2 years ago
 2 years ago
jenni_fowler Group Title
find the amount of money in the bank account given the following conditions: initial deposit= $5000, annual rate= 3%, time= 2 years
 2 years ago
 2 years ago

This Question is Closed

adnanchowdhury Group TitleBest ResponseYou've already chosen the best response.1
a = initial deposit, r = 1.03, n = 2
 2 years ago

waheguru Group TitleBest ResponseYou've already chosen the best response.0
What grade?
 2 years ago

jenni_fowler Group TitleBest ResponseYou've already chosen the best response.1
says answer is 5,304.50
 2 years ago

GT Group TitleBest ResponseYou've already chosen the best response.4
It should be 5000 * (1.03)^2. Assuming compounding of the interest rate.
 2 years ago

jenni_fowler Group TitleBest ResponseYou've already chosen the best response.1
oh so its 5000(1.03)^2
 2 years ago

waheguru Group TitleBest ResponseYou've already chosen the best response.0
Gt where dide u get the 1.3 from
 2 years ago

GT Group TitleBest ResponseYou've already chosen the best response.4
At the end of first year, you will have: 5000 + 5000 * 0.03 = 5000 * (1.03). At the end of second year, you will have: 5000 * (1.03) + 5000 * (1.03) * (0.03) Because you earn interest in the second year on the interest amount of the first year. So, that is same as: 5000 * (1.03)^2. In general, for compounded interest, for n years at rate r and principal p, you get: p * (1+r)^n
 2 years ago

fortheloveofscience Group TitleBest ResponseYou've already chosen the best response.0
oh yeah compounding of interest... didnt tought of that
 2 years ago

waheguru Group TitleBest ResponseYou've already chosen the best response.0
I GET IT NOW GT TANKS
 2 years ago

jenni_fowler Group TitleBest ResponseYou've already chosen the best response.1
so how do i get the answer
 2 years ago

GT Group TitleBest ResponseYou've already chosen the best response.4
Use a calculator to find: 5000 * (1.03) * (1.03). That should give you: 5,304.50
 2 years ago

fortheloveofscience Group TitleBest ResponseYou've already chosen the best response.0
yup its correct sir
 2 years ago

jenni_fowler Group TitleBest ResponseYou've already chosen the best response.1
thanks it swas 5304.5
 2 years ago

GT Group TitleBest ResponseYou've already chosen the best response.4
Sometimes, these kind of problems can be formulated such that the interest rate "r" is compounded semiannually or something else. In that case, the "formula" will be similar, but in that case, in p*(1+r)^n, r represents the rate of interest for that period (semiannually for example) and n represents the total "compounding" periods.
 2 years ago

fortheloveofscience Group TitleBest ResponseYou've already chosen the best response.0
well we all stupidly used simple interest formula..silly me
 2 years ago

jenni_fowler Group TitleBest ResponseYou've already chosen the best response.1
so what is the p r and n represent in the equation
 2 years ago

GT Group TitleBest ResponseYou've already chosen the best response.4
For example, in this exact same problem, if compounding happened semiannually, then you will have the following at the end of two years: 5000 * (1+0.015)^4
 2 years ago

GT Group TitleBest ResponseYou've already chosen the best response.4
p is initial amount. n is number of periods.
 2 years ago

GT Group TitleBest ResponseYou've already chosen the best response.4
r is rate of interest for that period.
 2 years ago

fortheloveofscience Group TitleBest ResponseYou've already chosen the best response.0
principle,rate of interest and time period
 2 years ago

jenni_fowler Group TitleBest ResponseYou've already chosen the best response.1
so if it were 3000 instead of 5000 and rate was 5.5 and time was 5 years how do i set that up
 2 years ago

GT Group TitleBest ResponseYou've already chosen the best response.4
3000 * (1.055)^5
 2 years ago

fortheloveofscience Group TitleBest ResponseYou've already chosen the best response.0
use the same algorithm
 2 years ago

GT Group TitleBest ResponseYou've already chosen the best response.4
assuming annual compounding.
 2 years ago

jenni_fowler Group TitleBest ResponseYou've already chosen the best response.1
ok so its similar to the other one
 2 years ago

jenni_fowler Group TitleBest ResponseYou've already chosen the best response.1
i got 3920.88
 2 years ago

jenni_fowler Group TitleBest ResponseYou've already chosen the best response.1
rounded
 2 years ago

jenni_fowler Group TitleBest ResponseYou've already chosen the best response.1
did i do it right?
 2 years ago

GT Group TitleBest ResponseYou've already chosen the best response.4
Yeah, I got the same. :)
 2 years ago

fortheloveofscience Group TitleBest ResponseYou've already chosen the best response.0
hmm i guess so..
 2 years ago

adnanchowdhury Group TitleBest ResponseYou've already chosen the best response.1
Oh sorry. My mistake. I gave you the sum formula for geometric progression. The correct formula in this case is: \[a _{n} = ar ^{n1}\], but in this case, you would take it as \[a _{n} = ar ^{n}\]
 2 years ago

jenni_fowler Group TitleBest ResponseYou've already chosen the best response.1
so i did it right :D
 2 years ago

jenni_fowler Group TitleBest ResponseYou've already chosen the best response.1
thakns again everyone
 2 years ago

fortheloveofscience Group TitleBest ResponseYou've already chosen the best response.0
say that to GT
 2 years ago
See more questions >>>
Your question is ready. Sign up for free to start getting answers.
spraguer
(Moderator)
5
→ View Detailed Profile
is replying to Can someone tell me what button the professor is hitting...
23
 Teamwork 19 Teammate
 Problem Solving 19 Hero
 Engagement 19 Mad Hatter
 You have blocked this person.
 ✔ You're a fan Checking fan status...
Thanks for being so helpful in mathematics. If you are getting quality help, make sure you spread the word about OpenStudy.