A community for students. Sign up today!
Here's the question you clicked on:
 0 viewing
 2 years ago
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
find the amount of money in the bank account given the following conditions: initial deposit= $5000, annual rate= 3%, time= 2 years

This Question is Closed

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

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

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

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

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

GT
 2 years ago
Best ResponseYou've already chosen the best response.4At 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

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

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

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

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

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

GT
 2 years ago
Best ResponseYou've already chosen the best response.4Sometimes, 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.

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

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

GT
 2 years ago
Best ResponseYou've already chosen the best response.4For 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

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

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

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

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

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

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

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

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

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

adnanchowdhury
 2 years ago
Best ResponseYou've already chosen the best response.1Oh 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 \[a _{n} = ar ^{n}\]

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

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

fortheloveofscience
 2 years ago
Best ResponseYou've already chosen the best response.0say that to GT
Ask your own question
Ask a QuestionFind more explanations on OpenStudy
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.