anonymous
  • anonymous
Find the value of $10000 at the end of one year if it is invested in an account that has an interest rate of 4.95% and is compounded in accordance with the rules below. (a). compounded monthly (b). compounded daily (assuming a 365- day year) (c). compounded quarterly
Linear Algebra
  • Stacey Warren - Expert brainly.com
Hey! We 've verified this expert answer for you, click below to unlock the details :)
SOLVED
At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores et quas molestias excepturi sint occaecati cupiditate non provident, similique sunt in culpa qui officia deserunt mollitia animi, id est laborum et dolorum fuga. Et harum quidem rerum facilis est et expedita distinctio. Nam libero tempore, cum soluta nobis est eligendi optio cumque nihil impedit quo minus id quod maxime placeat facere possimus, omnis voluptas assumenda est, omnis dolor repellendus. Itaque earum rerum hic tenetur a sapiente delectus, ut aut reiciendis voluptatibus maiores alias consequatur aut perferendis doloribus asperiores repellat.
schrodinger
  • schrodinger
I got my questions answered at brainly.com in under 10 minutes. Go to brainly.com now for free help!
PhoenixFire
  • PhoenixFire
Do you know the compound interest formula?
PhoenixFire
  • PhoenixFire
\[F=P(1+{r \over n})^{nt}\]F=Future amount P=Initial amount r=annual interest rate n=number of times compounded in a year t=number of years. So, for (a), compounded monthly. n=12, t=1, P=10000, r=0.0495. Substitute all that in and you'll have your F, the future amount.
anonymous
  • anonymous
Actually they are giving me the formula A=P(1+r/m)mt

Looking for something else?

Not the answer you are looking for? Search for more explanations.

More answers

anonymous
  • anonymous
\[10000(1+0.0495\div12)12\]
PhoenixFire
  • PhoenixFire
Same thing, different letters.
anonymous
  • anonymous
ok. SO HOW CAN I FIND THE ANSWER BECAUSE WHAT IM GETTING DOESNT SEEM CORRECT TO WHAT THE EXAMPLE IS SHOWING ME
anonymous
  • anonymous
I pretty much have found the computing formula to find each steps but unable to get verifiable answer
anonymous
  • anonymous
because in the examples they use 15000 and the answer turns out to be $15696.91
PhoenixFire
  • PhoenixFire
\[A=P(1+{r \over m})^{mt}\]\[A=10000(1+{0.0495\over 12})^{12}\]\[A=10000(1.05)\]\[A=10506.4\] Obviously I've done rounding where I shouldn't have, but that's the procedure.
anonymous
  • anonymous
how did they get that answers from using the formula because i know for m- i would put 12
PhoenixFire
  • PhoenixFire
What are the values they use in the examples?
anonymous
  • anonymous
they used 15000-p, 0.0455- r, and 12- m
PhoenixFire
  • PhoenixFire
Right so, put those values in in the formula. \[A=15000(1+{0.0455\over 12})^{12}\]
anonymous
  • anonymous
yes
PhoenixFire
  • PhoenixFire
And you get: 15696.91
anonymous
  • anonymous
yes thats what they got
anonymous
  • anonymous
how did u reach to that?
PhoenixFire
  • PhoenixFire
By working out the above equation. Lets do it step by step... Upcoming Ugly numbers!!! 0.0455/12=0.00379166666666666666666666666667 That+1=1.00379166666666666666666666666667 that ^ 12=1.0464609601126369220378253015612 that * 15000=15696.914401689553830567379523418 with some rounding, you get 15696.91.
anonymous
  • anonymous
thank you
anonymous
  • anonymous
let me try it myself and i will let you know
PhoenixFire
  • PhoenixFire
Order of operations. Brackets Exponents Division Multiplication Addition Subtraction or easily remembering: BEDMAS. Also, remember ab^k is NOT equal (ab)^k. the difference is that ab^k is a*(b^k) whereas (ab)^k is (a*b) ^ k... there's a different order that you apply the maths in; which result in a different value at the end.
anonymous
  • anonymous
ok
PhoenixFire
  • PhoenixFire
Good luck.
anonymous
  • anonymous
it didnt work the way u did it when i plugged everything myself into the equation It give me 10,506.39 and i got 2690666.1
PhoenixFire
  • PhoenixFire
Work it out in steps. 0.0495/12=a 1+a=b b^12=c P*c=F

Looking for something else?

Not the answer you are looking for? Search for more explanations.