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 one year 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
 one year 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

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

PhoenixFire
 one year 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.

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

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

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

clhenry
 one year 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

clhenry
 one year 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

clhenry
 one year 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
 one year 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.

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

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

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

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

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

PhoenixFire
 one year 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.

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

PhoenixFire
 one year 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.

clhenry
 one year 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
 one year 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
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