A community for students.
Here's the question you clicked on:
 0 viewing
anonymous
 3 years ago
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
anonymous
 3 years ago
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

This Question is Closed

PhoenixFire
 3 years ago
Best ResponseYou've already chosen the best response.0Do you know the compound interest formula?

PhoenixFire
 3 years ago
Best ResponseYou've already chosen the best response.0\[F=P(1+{r \over n})^{nt}\]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
 3 years ago
Best ResponseYou've already chosen the best response.0Actually they are giving me the formula A=P(1+r/m)mt

anonymous
 3 years ago
Best ResponseYou've already chosen the best response.0\[10000(1+0.0495\div12)12\]

PhoenixFire
 3 years ago
Best ResponseYou've already chosen the best response.0Same thing, different letters.

anonymous
 3 years ago
Best ResponseYou've already chosen the best response.0ok. SO HOW CAN I FIND THE ANSWER BECAUSE WHAT IM GETTING DOESNT SEEM CORRECT TO WHAT THE EXAMPLE IS SHOWING ME

anonymous
 3 years ago
Best ResponseYou've already chosen the best response.0I pretty much have found the computing formula to find each steps but unable to get verifiable answer

anonymous
 3 years ago
Best ResponseYou've already chosen the best response.0because in the examples they use 15000 and the answer turns out to be $15696.91

PhoenixFire
 3 years ago
Best ResponseYou've already chosen the best response.0\[A=P(1+{r \over m})^{mt}\]\[A=10000(1+{0.0495\over 12})^{12}\]\[A=10000(1.05)\]\[A=10506.4\] Obviously I've done rounding where I shouldn't have, but that's the procedure.

anonymous
 3 years ago
Best ResponseYou've already chosen the best response.0how did they get that answers from using the formula because i know for m i would put 12

PhoenixFire
 3 years ago
Best ResponseYou've already chosen the best response.0What are the values they use in the examples?

anonymous
 3 years ago
Best ResponseYou've already chosen the best response.0they used 15000p, 0.0455 r, and 12 m

PhoenixFire
 3 years ago
Best ResponseYou've already chosen the best response.0Right so, put those values in in the formula. \[A=15000(1+{0.0455\over 12})^{12}\]

PhoenixFire
 3 years ago
Best ResponseYou've already chosen the best response.0And you get: 15696.91

anonymous
 3 years ago
Best ResponseYou've already chosen the best response.0yes thats what they got

anonymous
 3 years ago
Best ResponseYou've already chosen the best response.0how did u reach to that?

PhoenixFire
 3 years ago
Best ResponseYou've already chosen the best response.0By 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
 3 years ago
Best ResponseYou've already chosen the best response.0let me try it myself and i will let you know

PhoenixFire
 3 years ago
Best ResponseYou've already chosen the best response.0Order 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
 3 years ago
Best ResponseYou've already chosen the best response.0it 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
 3 years ago
Best ResponseYou've already chosen the best response.0Work it out in steps. 0.0495/12=a 1+a=b b^12=c P*c=F
Ask your own question
Sign UpFind 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.