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anonymous
 one year ago
How much compound interest is earned on $4300 at 2.9% interest for 10 years, compounded quarterly? Give your answer in dollars and cents. Don’t forget to subtract P from A.
Compound Interest
anonymous
 one year ago
How much compound interest is earned on $4300 at 2.9% interest for 10 years, compounded quarterly? Give your answer in dollars and cents. Don’t forget to subtract P from A. Compound Interest

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wolf1728
 one year ago
Best ResponseYou've already chosen the best response.1Total Amount = Principal * (1 + rate/number cmpdg periods)^n*t Total Amount = 4,300 * (1 + .029/4)^4*10 Total Amount = 4,300 * (1.00725)^40 Total Amount = 4,300 * 1.3350300535 Total Amount = 5740.6292299865 Rounds to 5740.63 Calculator to test the answer: http://www.1728.org/compint.htm

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0im sorry but i dont get it :(

wolf1728
 one year ago
Best ResponseYou've already chosen the best response.1Gee, I followed the formula you posted. Guess I'll explain some more.

wolf1728
 one year ago
Best ResponseYou've already chosen the best response.1The first thing is to calculate the quarterly compounded rate after 10 years compounding (1 + rate/4) ^ 4*10 do you understand that?

wolf1728
 one year ago
Best ResponseYou've already chosen the best response.1The rate is 2.9% but to use it in a formula we need to use it as .029

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0ohhh okay, i guess i just needed it broken down?

wolf1728
 one year ago
Best ResponseYou've already chosen the best response.1Total = Principal * (1 + .029/4) ^ 4 *10

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0and it equals 5740.63

wolf1728
 one year ago
Best ResponseYou've already chosen the best response.1Do you see why we need to convert the 2.9 % to .029?

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0yes I do! thanks for explaining

wolf1728
 one year ago
Best ResponseYou've already chosen the best response.1okay You are welcome :)
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