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anonymous

  • one year ago

How much would $300 invested at 4% interest compounded monthly be worth after 8 years? Round your answer to the nearest cent. here's the equation: A(t)=P(1+r/n)^nt i just don't know what to put where please help

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  1. anonymous
    • one year ago
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    @Hero @mathstudent55

  2. Hero
    • one year ago
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    What I mean to ask is, what do you think each variable in the formula means?

  3. Hero
    • one year ago
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    Obviously t is in years, so 8 = t. You probably know that much at least.

  4. anonymous
    • one year ago
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    is it a(8)=300(1+.06/1)^8 ??

  5. anonymous
    • one year ago
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    @Hero

  6. Hero
    • one year ago
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    The 300 and the 8 is correct.

  7. anonymous
    • one year ago
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    is that is?

  8. anonymous
    • one year ago
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    it?*

  9. Hero
    • one year ago
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    There's more to it of course.

  10. Hero
    • one year ago
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    Okay, so the P is for the principal, which you figured out is $300. The r is the interest rate which is 4% or .04. And the n represents number of times compounded. You figure that out by multiply 8 years times 12 months per year. So n = 96.

  11. anonymous
    • one year ago
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    so 8=300(1+.04/1)^96?

  12. Hero
    • one year ago
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    Where do you get the "1" underneath the fraction? Isn't that supposed to be "n". What did we say n equals?

  13. Hero
    • one year ago
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    Actually, n = 12, not 96

  14. anonymous
    • one year ago
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    oh oops. 8=300(1+.04/12)^96 ?

  15. Hero
    • one year ago
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    So n represents number of times compounded per year which is 12. So A(8) = 300(1.04/12)^{96} is correct.

  16. anonymous
    • one year ago
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    is it 1.04 for the numerator? or 1+ .04/12?

  17. Hero
    • one year ago
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    Actually you have it right it's 1 + .04/12

  18. Hero
    • one year ago
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    I admit, I'm a little distracted atm. Not fully paying attention.

  19. anonymous
    • one year ago
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    okay. how do i solve it?

  20. Hero
    • one year ago
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    At this point, it's just plug and play if you have the right calculator you should be able to calculate A(8).

  21. anonymous
    • one year ago
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    am i solving for a?

  22. Hero
    • one year ago
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    You're finding A(8). Everything on the right side of the equation only has to be calculated.

  23. anonymous
    • one year ago
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    \[A(8)=300(1+\frac{ .04 }{ 12 })^96\]

  24. anonymous
    • one year ago
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    like this? i tried to put the 6 up next to the 9 but it didn't work

  25. anonymous
    • one year ago
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    @Hero

  26. Hero
    • one year ago
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    Use brackets

  27. Hero
    • one year ago
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    \(A(8)=300\left(1+\dfrac{ .04 }{ 12 }\right)^{96}\)

  28. anonymous
    • one year ago
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    i keep getting 51.61

  29. anonymous
    • one year ago
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    the answer choices are a) $412.92 b) $410.57 c) $308.10 d) $484.25

  30. anonymous
    • one year ago
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    do you get 51.61?

  31. anonymous
    • one year ago
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    @Hero

  32. Hero
    • one year ago
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    Hang on

  33. Hero
    • one year ago
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    I get 412.918...

  34. anonymous
    • one year ago
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    oh! okay. i see how you got that. thank you!!

  35. Hero
    • one year ago
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    You're Welcome bro.

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