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anonymous

  • one year ago

kale and merricat are making decisions about their bank accounts. kale wants to deposit $200 as a principle amount, with an interest of 2% compounded quarterly. mericat wants to deposit $200 as the principle amount, with an interest of 4% compounded monthly.

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  1. anonymous
    • one year ago
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    @ganeshie8 Please help me!

  2. jim_thompson5910
    • one year ago
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    what do you have so far?

  3. anonymous
    • one year ago
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    Nothing :( Well, I have a formula?

  4. jim_thompson5910
    • one year ago
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    which formula do you have

  5. anonymous
    • one year ago
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    a=p(1+r/n)^nt

  6. anonymous
    • one year ago
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    I could be wrong

  7. jim_thompson5910
    • one year ago
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    good

  8. jim_thompson5910
    • one year ago
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    that formula will be used here

  9. anonymous
    • one year ago
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    Yay:)

  10. jim_thompson5910
    • one year ago
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    `Harrison wants to deposit $200 as a principle amount, with an interest of 2% compounded quarterly` P = 200 is the principal r = 0.02 is the interest rate in decimal form (2% = 2/100 = 0.02) n = 4 is the number of times you compound the money per year (quarterly = 4 times) t = 2 years

  11. anonymous
    • one year ago
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    ok so then we would just plug it in right? n=200(1+0.02/4)^(2)(4) right?

  12. jim_thompson5910
    • one year ago
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    yep

  13. jim_thompson5910
    • one year ago
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    then compute it with a calculator

  14. anonymous
    • one year ago
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    I got 204.0401

  15. jim_thompson5910
    • one year ago
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    I'm getting something slightly higher

  16. anonymous
    • one year ago
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    Really? Maybe I typed it in wrong

  17. anonymous
    • one year ago
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    oh okay I got 408.0602! Sorry :)

  18. jim_thompson5910
    • one year ago
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    did you type in `200*(1+0.02/4)^(4*2)` ?

  19. anonymous
    • one year ago
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    yes

  20. anonymous
    • one year ago
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    I got 208.141409 when I did that

  21. jim_thompson5910
    • one year ago
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    I got that too

  22. jim_thompson5910
    • one year ago
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    208.141409 rounds to 208.14

  23. anonymous
    • one year ago
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    Ok :) What do we do next?

  24. jim_thompson5910
    • one year ago
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    now we move onto the next part `Sherrie wants to deposit $200 as the principle amount, with an interest of 4% compounded monthly.` what are P, r, n and t?

  25. anonymous
    • one year ago
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    p=200 r=0.04 t=12? bcuz 12 months in a year

  26. jim_thompson5910
    • one year ago
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    yep

  27. jim_thompson5910
    • one year ago
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    oh wait, no n = 12 and t = 2 since the time frame is 2 years

  28. anonymous
    • one year ago
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    oh sorry :)

  29. jim_thompson5910
    • one year ago
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    I forgot to post that `Explain which method results in more money after 2 years.` so each person has their money in for t = 2 years

  30. anonymous
    • one year ago
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    Hahaha it's fine:) I get it now

  31. anonymous
    • one year ago
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    do we plug those value in the same formula?

  32. jim_thompson5910
    • one year ago
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    yes you'll plug in P = 200, r = 0.04, n = 12 and t = 2

  33. anonymous
    • one year ago
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    K hold on please

  34. anonymous
    • one year ago
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    216.63?

  35. jim_thompson5910
    • one year ago
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    I'm getting the same thing

  36. anonymous
    • one year ago
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    So the answer would be Sherrie?

  37. jim_thompson5910
    • one year ago
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    Harrison will have 208.14 Sherrie will have 216.63

  38. jim_thompson5910
    • one year ago
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    yep she has more money

  39. anonymous
    • one year ago
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    Thank-you so much!!!!

  40. jim_thompson5910
    • one year ago
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    no problem

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