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ganeshie8
 one year ago
Best ResponseYou've already chosen the best response.0use the compound interest formula \(\large A = P(1+\frac{r}{n})^{nt}\) \(P\) = 200 \(r\) = 3% = 0.03 \(n\) = 12 (months) \(t\) = 10 (years)

ganeshie8
 one year ago
Best ResponseYou've already chosen the best response.0plugin the values and see wat u get

nslesin
 one year ago
Best ResponseYou've already chosen the best response.2\[A= 200 (1+ \frac{ 0.03 }{ 12 }) ^{(12\times ^{10)}}\]

ganeshie8
 one year ago
Best ResponseYou've already chosen the best response.0yes ! give it to ur calculator

nslesin
 one year ago
Best ResponseYou've already chosen the best response.2So I do \[(1+0.03\div12)\]first?

nslesin
 one year ago
Best ResponseYou've already chosen the best response.2\[A= 200 (1 + 0.0025) ^{12\times10}\]

nslesin
 one year ago
Best ResponseYou've already chosen the best response.2\[A= 200(1.0025)^{(120)}\] I am unsure which part to do first.

nslesin
 one year ago
Best ResponseYou've already chosen the best response.2269.87.. that seems like a small #

phi
 one year ago
Best ResponseYou've already chosen the best response.1You should be using the formula that gives you the future value of a stream of regular payments. see http://www.annuityformulas.org/futurevalueofregularpayments.html

ganeshie8
 one year ago
Best ResponseYou've already chosen the best response.0thats all you wud get at 3% interest rate for 10 years this is not an annuity setup @phi

phi
 one year ago
Best ResponseYou've already chosen the best response.1For Zach, the equation is \[ FV= pymt \cdot \frac{ (1+i)^n  1}{i} \] where n is 10 years, pymt is 2400 and i is 0.03

phi
 one year ago
Best ResponseYou've already chosen the best response.1no, Yolanda is depositing 200 per month, or 200*12= 2400 per year for 10 years = 24,000 that is if there was no interest. But there is 3% interest, so it will be bigger than that

ganeshie8
 one year ago
Best ResponseYou've already chosen the best response.0yes @phi thanks for catching that, weird 260 is small i dint even notice... i need to go run an errand, cya

nslesin
 one year ago
Best ResponseYou've already chosen the best response.2@phi so what is the equation set up now im officially confused could u write it step by step for me?

phi
 one year ago
Best ResponseYou've already chosen the best response.1I wrote out Zach's can you do that one first ?

nslesin
 one year ago
Best ResponseYou've already chosen the best response.2Fv= 2400 x (1+0.03)/0.03

phi
 one year ago
Best ResponseYou've already chosen the best response.1that is not the formula. Look more carefully

nslesin
 one year ago
Best ResponseYou've already chosen the best response.2fv=2400 x (1+0.03)^(10)1/0.03?

phi
 one year ago
Best ResponseYou've already chosen the best response.1yes but use parens fv=2400 x ( (1+0.03)^(10)1 ) /0.03?

phi
 one year ago
Best ResponseYou've already chosen the best response.1ball park, but not exactly what do you get for 1.03^10 ?

phi
 one year ago
Best ResponseYou've already chosen the best response.1yes, now subtract 1 to get .343916379

nslesin
 one year ago
Best ResponseYou've already chosen the best response.2So thats Zachs. now i have to find balance in Yolanda savings plan after 10 years

phi
 one year ago
Best ResponseYou've already chosen the best response.1For Yolanda you use the same formula (they don't say if she deposits the $200 at the end of each month.. but let's assume she does) however, n is in months (so 10*12= 120) and the interest is per month so 0.03/12

nslesin
 one year ago
Best ResponseYou've already chosen the best response.2Wait so n= number of years?

phi
 one year ago
Best ResponseYou've already chosen the best response.1n is the number of payments

nslesin
 one year ago
Best ResponseYou've already chosen the best response.2FV= pymt \[\times (1+i)^n1\]\[\div i\]

nslesin
 one year ago
Best ResponseYou've already chosen the best response.2it doesnt say the number of payments

phi
 one year ago
Best ResponseYou've already chosen the best response.1it says every month for 10 years how many months in a year ?

nslesin
 one year ago
Best ResponseYou've already chosen the best response.2how do i figure out pymt is i= 0.03?

phi
 one year ago
Best ResponseYou've already chosen the best response.1you want i per month. they give you the i for the whole year

nslesin
 one year ago
Best ResponseYou've already chosen the best response.2Argh i hate this 2.5 x 10 ^ 03 how do i do that?

phi
 one year ago
Best ResponseYou've already chosen the best response.1you want (1+i)^120 where i= 0.03/12 so do it in steps: 0.03/12 add 1 raise to the 120 power

nslesin
 one year ago
Best ResponseYou've already chosen the best response.2yeah im totally confused

phi
 one year ago
Best ResponseYou've already chosen the best response.1you are doing \[ FV= pymt \cdot \frac{ (1+i)^n  1}{i} \] does your calculator have memory, so you can put 0.03/12 into memory ?

phi
 one year ago
Best ResponseYou've already chosen the best response.1type parens ( then 1 + 0.03/12 then close ) then ^ then 120

nslesin
 one year ago
Best ResponseYou've already chosen the best response.22.5 x 10 ^ 03 how do i do that?

phi
 one year ago
Best ResponseYou've already chosen the best response.1just type into your calculator 0.03 ÷ 12 + 1 enter

phi
 one year ago
Best ResponseYou've already chosen the best response.1you will get a number now type ^ 120

phi
 one year ago
Best ResponseYou've already chosen the best response.1then type  1 (to subtract 1)

phi
 one year ago
Best ResponseYou've already chosen the best response.1you are doing 1.0025^120  1

phi
 one year ago
Best ResponseYou've already chosen the best response.11.0025^120  1 you get 1.349353547 1 and .349353547 now divide by (0.03/12) (or 0.0025)

nslesin
 one year ago
Best ResponseYou've already chosen the best response.2but what about the 0.349353547+1?

phi
 one year ago
Best ResponseYou've already chosen the best response.1you are doing 1.0025^120  1 which gives you 0.349353547 at this point, you do not add +1. the formula says divide by i i is 0.0025 (the same as 0.03/12)

nslesin
 one year ago
Best ResponseYou've already chosen the best response.2it just FV= pymt (1.0025)^120 1

phi
 one year ago
Best ResponseYou've already chosen the best response.1you need parens and you need to divide by i \[ FV= pymt \cdot \frac{ (1+i)^n  1}{i} \]

phi
 one year ago
Best ResponseYou've already chosen the best response.1the payment is how much Yolanda is saving each month (how much she is paying into her bank account)

nslesin
 one year ago
Best ResponseYou've already chosen the best response.2that doesnt seem right

phi
 one year ago
Best ResponseYou've already chosen the best response.1because it is not correct. you must use the correct formula

phi
 one year ago
Best ResponseYou've already chosen the best response.1yes \[ FV= pymt \cdot \frac{ (1+i)^n  1}{i}\]

phi
 one year ago
Best ResponseYou've already chosen the best response.1you forgot the divide by i

phi
 one year ago
Best ResponseYou've already chosen the best response.1I am saying that this is not correct 200 (1+0.03/12)^1201 the correct formula is 200 ( (1+0.03/12)^1201)/ (0.03/12)

nslesin
 one year ago
Best ResponseYou've already chosen the best response.2oh i forgot to add divide by i

phi
 one year ago
Best ResponseYou've already chosen the best response.1you are not doing the calculation correctly type this into the google search window 200 * ( (1+0.03/12)^1201)/ (0.03/12)=

nslesin
 one year ago
Best ResponseYou've already chosen the best response.2and zach was what we did before which was 27,513.31
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