LilRyG
How do I set this p?
Use the compound interest formula to compute the total amount accumulated. $10,000 for 20 years at 5% compounded annually.
A. $20,000.00 B. $25,269.50 C. $19,500.00 D. $26,532.98
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timo86m
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post the formula
jabberwock
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A=P(1+r/n)^(nt)
eliassaab
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\[
P= P_0\left( 1 + r) \right)^n
\]
jabberwock
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r as a decimal rather than a percentage, n as the number of compoundings per year, and t as the time in years.
eliassaab
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\[
10000(1.05)^{20}
\]
jabberwock
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Looks right
eliassaab
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. $26,532.98
timo86m
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10,000 *(1+.05)^(20)
D
LilRyG
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that s 2 diferent formulas you guys are givin me. so witch one is it?
jabberwock
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Yep. That looks right.
@LilRyG - They're both right
timo86m
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well the one with the n the n is just one. :)
jabberwock
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Except n means something different in her formula.
jabberwock
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n represents the number of years. Hers is only good for annual compounding.
timo86m
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A=P(1+r/n)^(nt) the n is used to manipulate it to yearly quarterly or monthly
timo86m
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with 1 it is yearly
timo86m
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with n=12 montly
n=12/4 quarterly
LilRyG
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okay thank you guys!!
timo86m
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de nada :)