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

This Question is Closed

mariomintchevBest ResponseYou've already chosen the best response.0
annuity formula: A=R*( (1+i)^n  1 ) / (i)
 one year ago

mariomintchevBest ResponseYou've already chosen the best response.0
compound formula: A=P(1+ r/n)^nt
 one year ago

glamsunnyskylarBest ResponseYou've already chosen the best response.0
Sorry, it won't load for me, or else I really would help you.
 one year ago

mariomintchevBest ResponseYou've already chosen the best response.0
A company contributes $150 per month into a retirement fund paying a nominal interest rate of 4.40% APR compounded monthly and employees are permitted to invest up to $ 2,900 per year into another retirement fund which pays a nominal interest rate of 4.40% APR compounded annually. How large can the combined retirement fund be worth in 25 years?
 one year ago

satellite73Best ResponseYou've already chosen the best response.1
we can do this if you have the formulas
 one year ago

mariomintchevBest ResponseYou've already chosen the best response.0
i do but im not getting the results.
 one year ago

satellite73Best ResponseYou've already chosen the best response.1
i guess this is the formula you wrote A=R*( (1+i)^n  1 ) / (i) but i am not sure what all the variable represent
 one year ago

mariomintchevBest ResponseYou've already chosen the best response.0
ok A stands for Annuity, R is the payment, i is the APR/frequency of pay, and n is the frequency of pay
 one year ago

mariomintchevBest ResponseYou've already chosen the best response.0
so for example "i" would be .044/12
 one year ago

satellite73Best ResponseYou've already chosen the best response.1
then \[\frac{150(1+\frac{.044}{12})^{121}}{\frac{.044}{12}}\] but that can't be right, because there is no time mentioned in the formula is perhaps \(n\) the number of payments?
 one year ago

satellite73Best ResponseYou've already chosen the best response.1
that would make more sense it can't really be the frequency of the payments minus one there has to be something mentioning the number of payments made
 one year ago

mariomintchevBest ResponseYou've already chosen the best response.0
n is 12 *25 i think
 one year ago

satellite73Best ResponseYou've already chosen the best response.1
ooh ok it is the number of payments
 one year ago

satellite73Best ResponseYou've already chosen the best response.1
\[\frac{150(1+\frac{.044}{12})^{12\times 251}}{\frac{.044}{12}}\]
 one year ago

satellite73Best ResponseYou've already chosen the best response.1
that is what you wrote
 one year ago

satellite73Best ResponseYou've already chosen the best response.1
you wrote \(n1\) i assumed that was in the exponent
 one year ago

satellite73Best ResponseYou've already chosen the best response.1
makes sense if you are summing a geometric sequence i think
 one year ago

mariomintchevBest ResponseYou've already chosen the best response.0
its not n1. its raised to n and then you subtract everything in the parenthesis by 1.
 one year ago

mariomintchevBest ResponseYou've already chosen the best response.0
A = R ( ( 1+i)^(n)  1 ) / (i)
 one year ago

satellite73Best ResponseYou've already chosen the best response.1
\[\frac{150((1+\frac{.044}{12})^{300}1)}{\frac{.044}{12}}\]
 one year ago

satellite73Best ResponseYou've already chosen the best response.1
i get 81741.62 rounded http://www.wolframalpha.com/input/?i=\frac{150%28%281%2B\frac{.044}{12}%29^{300}1%29}{\frac{.044}{12}}
 one year ago

mariomintchevBest ResponseYou've already chosen the best response.0
yeah thats what i got earlier too
 one year ago

mariomintchevBest ResponseYou've already chosen the best response.0
what do we do with the 2900?
 one year ago

satellite73Best ResponseYou've already chosen the best response.1
\[2900((1.044)^{25}1)\]
 one year ago

satellite73Best ResponseYou've already chosen the best response.1
since it is yearly, \(i=1\)
 one year ago

mariomintchevBest ResponseYou've already chosen the best response.0
why dont we divide or multiply by 12 anywhere?
 one year ago

satellite73Best ResponseYou've already chosen the best response.1
not if it is yearly, no that is for monthly
 one year ago

mariomintchevBest ResponseYou've already chosen the best response.0
o i think thats probably what ive been doing wrong
 one year ago

satellite73Best ResponseYou've already chosen the best response.1
2900 per year compounded annually it says
 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.