A community for students.

Here's the question you clicked on:

55 members online
  • 0 replying
  • 0 viewing

ButterflyHope

  • one year ago

Urgent *WILL MEDAL*: James invested $5000 in a money market account that earns 10% interest compounded monthly. Which equation can be used to find the balance in James's account at the end of 4 years? Thanks :))

  • This Question is Closed
  1. anonymous
    • one year ago
    Best Response
    You've already chosen the best response.
    Medals 0

    ok, so the formula of this equation is A=P(1+R/N)^nt

  2. anonymous
    • one year ago
    Best Response
    You've already chosen the best response.
    Medals 0

    A is the ending amount

  3. anonymous
    • one year ago
    Best Response
    You've already chosen the best response.
    Medals 0

    P is the amount invested

  4. anonymous
    • one year ago
    Best Response
    You've already chosen the best response.
    Medals 0

    r is the rate

  5. anonymous
    • one year ago
    Best Response
    You've already chosen the best response.
    Medals 0

    n is the number of compoundings per year

  6. anonymous
    • one year ago
    Best Response
    You've already chosen the best response.
    Medals 0

    t is total number of years

  7. anonymous
    • one year ago
    Best Response
    You've already chosen the best response.
    Medals 0

    If its monthly n=4

  8. anonymous
    • one year ago
    Best Response
    You've already chosen the best response.
    Medals 0

    now we substitute A=5000(1+.1/4)^16

  9. anonymous
    • one year ago
    Best Response
    You've already chosen the best response.
    Medals 0

    1.25^16 is ~35.5 Then we multiply by 5000

  10. anonymous
    • one year ago
    Best Response
    You've already chosen the best response.
    Medals 0

    So around 177k. He made a really good investment lol ;)

  11. anonymous
    • one year ago
    Best Response
    You've already chosen the best response.
    Medals 0

    OH wait. I was wrong. equation is A=5000(1+ .010/4)^16

  12. anonymous
    • one year ago
    Best Response
    You've already chosen the best response.
    Medals 0

    that would be around 1.17 x 5000

  13. anonymous
    • one year ago
    Best Response
    You've already chosen the best response.
    Medals 0

    Final answer is 5863. Good luck :)

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

    • Attachments:

Ask your own question

Sign Up
Find more explanations on OpenStudy
Privacy Policy

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
  • 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.

This is the testimonial you wrote.
You haven't written a testimonial for Owlfred.