A community for students.
Here's the question you clicked on:
 0 viewing
anonymous
 3 years ago
How would I set up this problem?
 Minnie deposited $5,375 into a savings account 18 years ago. The account has an interest rate of 3.2% and the balance is currently $9,561.39. How often does the interest compound?
anonymous
 3 years ago
How would I set up this problem?  Minnie deposited $5,375 into a savings account 18 years ago. The account has an interest rate of 3.2% and the balance is currently $9,561.39. How often does the interest compound?

This Question is Open

tkhunny
 3 years ago
Best ResponseYou've already chosen the best response.0Solve! \(5375.00\left(1 + \dfrac{0.032}{m}\right)^{18*m} = 9561.39\) Of course, you cannot solve that for m, so I'd just try a few values. \(5375.00\left(1 + \dfrac{0.032}{1}\right)^{18*1} = ??\) \(5375.00\left(1 + \dfrac{0.032}{2}\right)^{18*2} = ??\) \(5375.00\left(1 + \dfrac{0.032}{4}\right)^{18*4} = ??\) \(5375.00\left(1 + \dfrac{0.032}{12}\right)^{18*12} = ??\) If none of those works, we'll just have to work a little harder. Note: Continuous compounding gives $9,561.50. Maybe we should try: \(5375.00\left(1 + \dfrac{0.032}{52}\right)^{18*52} = ??\) \(5375.00\left(1 + \dfrac{0.032}{365}\right)^{18*365} = ??\)
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.