what is the answer to this problem: A principal of $2000 is deposited in an account the pays 6% interest componded yearly. Find the balance after 12 years
2006-07-25 11:24:53 · 12 answers · asked by joinerd@sbcglobal.net 1 in Education & Reference ➔ Homework Help
6/100 x 2000 = 120 which is wat he gets each year
120 x 12 = 1440 which is the total interest
1440 + 2000 = 3440 which is the balance after 12 yrs
2006-07-25 11:31:15 · answer #1 · answered by ChEkNa . 4 · 0⤊ 0⤋
Heh!
Should have invested in shares!
with a principal of $2000-00 less $25-00 brokerage fee after 12 years in blue chip stocks you could have more than quadrupled your money
2006-07-25 18:58:14 · answer #2 · answered by Orinoco 7 · 0⤊ 0⤋
Yeah, it's more than 3440...that's coming from people that don't know what compounded yearly means...you earn 120 the first year, then 6 percent of 2120 the second year and it just keeps getting bigger. I'd guess around 4k or so.
2006-07-25 18:47:52 · answer #3 · answered by keats27 4 · 0⤊ 0⤋
A calculator sits under an old bag of potato chips under your bed for 1 year. Factor in mold and dust. What will your job at Wal-Mart buy in potato chips when you won't learn your way through school but cheat online?
:)
2006-07-25 18:35:37 · answer #4 · answered by fitpro11 4 · 0⤊ 0⤋
damnitt, boy, do your own math... you can use a calculator:
The Compound Interest Equation
P = C (1 + r/n) nt
where
P = future value
C = initial deposit
r = interest rate (expressed as a fraction: eg. 0.06)
n = # of times per year interest is compounded
t = number of years invested
2006-07-25 18:32:57 · answer #5 · answered by Onyx Dracona 3 · 0⤊ 0⤋
The answer is $4,024.39
I did it by hand, and Mr. Big shot (or what ever his name is) that mentioned the website - that is right. The other guy keats (or somethin) he is right, thats how you figure it out by hand.
Good luck
2006-07-25 19:07:22 · answer #6 · answered by Honey 3 · 0⤊ 0⤋
The correct answer is 4,024.39 Use the interest rate calculator found at http://www.moneychimp.com/calculator/compound_interest_calculator.htm
To do this by hand, use an annuity table.
Please give me 10 points. Thanks,
2006-07-25 18:37:26 · answer #7 · answered by The Big Shot 6 · 0⤊ 0⤋
3440
2006-07-25 18:36:42 · answer #8 · answered by Gemma G 3 · 0⤊ 0⤋
$3540
2006-07-25 18:29:45 · answer #9 · answered by Reptar 4 · 0⤊ 0⤋
im pretty sure its 14400
2006-07-25 18:29:40 · answer #10 · answered by Anonymous · 0⤊ 0⤋