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TammisaurusRex

  • one year ago

"After 6 years, what is the total amount of a compound interest investment of $35,000 at 4% interest, compounded quarterly?" I tried to solve this question and I thought I did it right but my answer matched none of the multiple-choice answers I was given, so apparently I did something wrong.

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  1. TammisaurusRex
    • one year ago
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    I think the formula I'm supposed to use is the Compound Interest Formula: \[A = P(1 + \frac{ r }{ n })^{nt}\] Where A = total, P = principal, t = time (years), r = annual interest rate, and n = number of compounds per year

  2. TammisaurusRex
    • one year ago
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    But every time I plug the values in I get 89,000 something, but my choices are as follows: A. $37,153.21 B. $39,438.88 C. $44,440.71 D. $56,295.30

  3. amistre64
    • one year ago
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    show me how you filled in the formula

  4. TammisaurusRex
    • one year ago
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    Oh wait!! I realize what I did wrong! Instead of plugging in r/n inside the parenthesis, I only plugged in r.

  5. TammisaurusRex
    • one year ago
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    Let me try it one more time and I'll see if it works.

  6. amistre64
    • one year ago
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    my idea was you didnt convert 4% correctly as .04 ... but that was just a guess

  7. TammisaurusRex
    • one year ago
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    I got it! Thank you for your help though (:

  8. stamp
    • one year ago
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    C, 44,440 http://www.wolframalpha.com/input/?i=%2435000+%281%2B0.04%2F4%29^%284*6%29

  9. amistre64
    • one year ago
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    i knew you could :)

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