anonymous
  • anonymous
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
Mathematics
  • Stacey Warren - Expert brainly.com
Hey! We 've verified this expert answer for you, click below to unlock the details :)
SOLVED
At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores et quas molestias excepturi sint occaecati cupiditate non provident, similique sunt in culpa qui officia deserunt mollitia animi, id est laborum et dolorum fuga. Et harum quidem rerum facilis est et expedita distinctio. Nam libero tempore, cum soluta nobis est eligendi optio cumque nihil impedit quo minus id quod maxime placeat facere possimus, omnis voluptas assumenda est, omnis dolor repellendus. Itaque earum rerum hic tenetur a sapiente delectus, ut aut reiciendis voluptatibus maiores alias consequatur aut perferendis doloribus asperiores repellat.
katieb
  • katieb
I got my questions answered at brainly.com in under 10 minutes. Go to brainly.com now for free help!
anonymous
  • anonymous
@Hero @mathstudent55
Hero
  • Hero
What I mean to ask is, what do you think each variable in the formula means?
Hero
  • Hero
Obviously t is in years, so 8 = t. You probably know that much at least.

Looking for something else?

Not the answer you are looking for? Search for more explanations.

More answers

anonymous
  • anonymous
is it a(8)=300(1+.06/1)^8 ??
anonymous
  • anonymous
@Hero
Hero
  • Hero
The 300 and the 8 is correct.
anonymous
  • anonymous
is that is?
anonymous
  • anonymous
it?*
Hero
  • Hero
There's more to it of course.
Hero
  • Hero
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.
anonymous
  • anonymous
so 8=300(1+.04/1)^96?
Hero
  • Hero
Where do you get the "1" underneath the fraction? Isn't that supposed to be "n". What did we say n equals?
Hero
  • Hero
Actually, n = 12, not 96
anonymous
  • anonymous
oh oops. 8=300(1+.04/12)^96 ?
Hero
  • Hero
So n represents number of times compounded per year which is 12. So A(8) = 300(1.04/12)^{96} is correct.
anonymous
  • anonymous
is it 1.04 for the numerator? or 1+ .04/12?
Hero
  • Hero
Actually you have it right it's 1 + .04/12
Hero
  • Hero
I admit, I'm a little distracted atm. Not fully paying attention.
anonymous
  • anonymous
okay. how do i solve it?
Hero
  • Hero
At this point, it's just plug and play if you have the right calculator you should be able to calculate A(8).
anonymous
  • anonymous
am i solving for a?
Hero
  • Hero
You're finding A(8). Everything on the right side of the equation only has to be calculated.
anonymous
  • anonymous
\[A(8)=300(1+\frac{ .04 }{ 12 })^96\]
anonymous
  • anonymous
like this? i tried to put the 6 up next to the 9 but it didn't work
anonymous
  • anonymous
@Hero
Hero
  • Hero
Use brackets
Hero
  • Hero
\(A(8)=300\left(1+\dfrac{ .04 }{ 12 }\right)^{96}\)
anonymous
  • anonymous
i keep getting 51.61
anonymous
  • anonymous
the answer choices are a) $412.92 b) $410.57 c) $308.10 d) $484.25
anonymous
  • anonymous
do you get 51.61?
anonymous
  • anonymous
@Hero
Hero
  • Hero
Hang on
Hero
  • Hero
I get 412.918...
anonymous
  • anonymous
oh! okay. i see how you got that. thank you!!
Hero
  • Hero
You're Welcome bro.

Looking for something else?

Not the answer you are looking for? Search for more explanations.