Got Homework?
Connect with other students for help. It's a free community.
Here's the question you clicked on:
 0 viewing
clhenry
Group Title
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
 one year ago
 one year ago
clhenry Group Title
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
 one year ago
 one year ago

This Question is Closed

PhoenixFire Group TitleBest ResponseYou've already chosen the best response.0
Do you know the compound interest formula?
 one year ago

PhoenixFire Group TitleBest 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.
 one year ago

clhenry Group TitleBest ResponseYou've already chosen the best response.0
Actually they are giving me the formula A=P(1+r/m)mt
 one year ago

clhenry Group TitleBest ResponseYou've already chosen the best response.0
\[10000(1+0.0495\div12)12\]
 one year ago

PhoenixFire Group TitleBest ResponseYou've already chosen the best response.0
Same thing, different letters.
 one year ago

clhenry Group TitleBest ResponseYou've already chosen the best response.0
ok. SO HOW CAN I FIND THE ANSWER BECAUSE WHAT IM GETTING DOESNT SEEM CORRECT TO WHAT THE EXAMPLE IS SHOWING ME
 one year ago

clhenry Group TitleBest ResponseYou've already chosen the best response.0
I pretty much have found the computing formula to find each steps but unable to get verifiable answer
 one year ago

clhenry Group TitleBest ResponseYou've already chosen the best response.0
because in the examples they use 15000 and the answer turns out to be $15696.91
 one year ago

PhoenixFire Group TitleBest 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.
 one year ago

clhenry Group TitleBest ResponseYou've already chosen the best response.0
how did they get that answers from using the formula because i know for m i would put 12
 one year ago

PhoenixFire Group TitleBest ResponseYou've already chosen the best response.0
What are the values they use in the examples?
 one year ago

clhenry Group TitleBest ResponseYou've already chosen the best response.0
they used 15000p, 0.0455 r, and 12 m
 one year ago

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

PhoenixFire Group TitleBest ResponseYou've already chosen the best response.0
And you get: 15696.91
 one year ago

clhenry Group TitleBest ResponseYou've already chosen the best response.0
yes thats what they got
 one year ago

clhenry Group TitleBest ResponseYou've already chosen the best response.0
how did u reach to that?
 one year ago

PhoenixFire Group TitleBest ResponseYou've already chosen the best response.0
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.
 one year ago

clhenry Group TitleBest ResponseYou've already chosen the best response.0
let me try it myself and i will let you know
 one year ago

PhoenixFire Group TitleBest ResponseYou've already chosen the best response.0
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.
 one year ago

PhoenixFire Group TitleBest ResponseYou've already chosen the best response.0
Good luck.
 one year ago

clhenry Group TitleBest ResponseYou've already chosen the best response.0
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
 one year ago

PhoenixFire Group TitleBest ResponseYou've already chosen the best response.0
Work it out in steps. 0.0495/12=a 1+a=b b^12=c P*c=F
 one year ago
See more questions >>>
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.