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anonymous
 one year ago
Need help with completing the table below with the amounts you would have if you invested $1,000 for at 5% interest with simple interest and with interest compounded annually. Round to the nearest cent.
Compound Interest
1 year $1050
2 years $
3 years $
4 years $
5 years $
anonymous
 one year ago
Need help with completing the table below with the amounts you would have if you invested $1,000 for at 5% interest with simple interest and with interest compounded annually. Round to the nearest cent. Compound Interest 1 year $1050 2 years $ 3 years $ 4 years $ 5 years $

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anonymous
 one year ago
Best ResponseYou've already chosen the best response.0I know that for the first year it's $1050

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0Well, the formula for this is Interest = Price * rate * time. So, I is what we need to find. So, I = (1,000) (0.05) (1) is 50. So, for year 1, it is 1,050. Using the same formula, can you figure out the rest?

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0Yes. Just keep using that formula and you should get the rest.

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0wait but wouldn't this be it for simple interest? We are looking for compound?

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0Well, for compound interest, Amount = Principal * (1 + rate / number of times per year) ^time

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0You see because I have the values we are getting for the simple interest table, and it's saying I got those values correct. But what I'm trying to do is complete the second column which is titled compound interest values.

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0That's what I did before but it said my values were incorrect, Can I show you what I did?

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0Ok, so for the first year I did 1000(1+.05/1)^1

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0I got the fist value which is correct 1050

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0But for the remaining years here's what I did: 1000(1+.05/2)^2

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0But I'm assuming my substitution is wrong

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0Do you happen to see what I'm doing wrong?

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0are you sure you typed it in right?

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0Oh! Perhaps you did not do the order of operations. See, do the (1 + 0.05/2) first, then the ^2, and then the 1,000? When doing that I got, 1,050.625.

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0That's what I got too

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0It said my answers were wrong. Do you think it could be the rounding to the nearest cent?

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0Perhaps so. Then it would be 1,050.625 = 1,050.63

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0That's what I had originally put but it said I'm wrong

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0Maybe I'll try emailing my instructor

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0Oh wait. you said you put in 1,050.62. When you round up its .63 not 2?

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0Ok and for the next years would these be correct then? $1050.84 $1050.94 $1051.10

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0They all came out to being wrong when I originally put them in

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0For year 3, I got 1,033.61...? Double checked it as well.

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0See if you get that.

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0I'm not getting that, I must be putting it in wrong

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0Are both year 4 & 5 wrong as well?

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0OH. DANGIT. SORRY that's me.

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0I forgot to change the exponent to 3. So, yes. 1,050.83 is correct =).

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0Do you mean for year three?

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0Because then wouldn't the values just be decreasing and then increasing?

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0From 1033.61 for year 2 to year 3

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0I guess thats what it is?

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0So do the rest of the values for year 4&5 seem correct?

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0um year 3 is 1,050.83, Year 4 is 1,050.94, and year 5 is 1,051.01. So yes.

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0it's still incorrect when I put it in, but thank you!

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0I'll email my instructor and figure it out

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0Your Welcome! Msg me if you need help again! =)
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