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LilRyG

  • 3 years ago

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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  1. timo86m
    • 3 years ago
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    post the formula

  2. jabberwock
    • 3 years ago
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    A=P(1+r/n)^(nt)

  3. eliassaab
    • 3 years ago
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    \[ P= P_0\left( 1 + r) \right)^n \]

  4. jabberwock
    • 3 years ago
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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.

  5. eliassaab
    • 3 years ago
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    \[ 10000(1.05)^{20} \]

  6. jabberwock
    • 3 years ago
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    Looks right

  7. eliassaab
    • 3 years ago
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    . $26,532.98

  8. timo86m
    • 3 years ago
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    10,000 *(1+.05)^(20) D

  9. LilRyG
    • 3 years ago
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    that s 2 diferent formulas you guys are givin me. so witch one is it?

  10. jabberwock
    • 3 years ago
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    Yep. That looks right. @LilRyG - They're both right

  11. timo86m
    • 3 years ago
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    well the one with the n the n is just one. :)

  12. jabberwock
    • 3 years ago
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    Except n means something different in her formula.

  13. jabberwock
    • 3 years ago
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    n represents the number of years. Hers is only good for annual compounding.

  14. timo86m
    • 3 years ago
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    A=P(1+r/n)^(nt) the n is used to manipulate it to yearly quarterly or monthly

  15. timo86m
    • 3 years ago
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    with 1 it is yearly

  16. timo86m
    • 3 years ago
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    with n=12 montly n=12/4 quarterly

  17. LilRyG
    • 3 years ago
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    okay thank you guys!!

  18. timo86m
    • 3 years ago
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    de nada :)

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