mary puts $1,500 in a bank certificate that pays an annual rate of 4.5% compounded anually. no withdrawls or deposits are made.How much will the certificate be worth (to the nearest dollar) at the end of 7 years?
2006-09-07 12:01:43 · 9 answers · asked by Nafertiti 2 in Science & Mathematics ➔ Mathematics
How much will it be worth after 1 year?
$1,500*(1+.045)
After two years?
[$1,500*(1+.045)]*(1+.045) = $1,500*(1+.045)^2
After seven years (end of seven years)?
$1,500*(1+.045)^7 = $2041.29 ~ $2041
Capisce?
2006-09-07 12:06:56 · answer #1 · answered by Andy S 6 · 1⤊ 0⤋
Nothing if she puts it in a bad bank, and what with the economy being as it is and bush letting anybody and their brother accept federal bailouts while stiffling the little guy, I would say Mary is better off at putting that money in a sock under her mattress.
2006-09-07 19:07:38 · answer #2 · answered by Niche Jerk 4 · 0⤊ 2⤋
$2041
2006-09-07 19:09:14 · answer #3 · answered by Steve P 5 · 0⤊ 2⤋
Y1 - 1500 + 4.5% = 1567.5
Y2 - 1567.5 " " = 1638.04
Y3 - 1638.04 " " = 1711.75
Y4 - 1711.75 " " = 1788.78
Y5 - 1788.78 " " = 1869.27
Y6 - 1869.27 " " = 1953.39
Y7 - 1953.39 " " = 2041.29
Final - $2,041
The other methods might be quicker but it's important to show your work.
2006-09-07 19:18:10 · answer #4 · answered by freetibetfighter 3 · 0⤊ 0⤋
$1532
2006-09-07 19:09:42 · answer #5 · answered by OoO_manda_bearz_OoO 2 · 0⤊ 3⤋
$1972.5
you take the rate (4.5%) times it by the amount ($1500) then times that by years(7) and then add the orignal amount back in ($1500)
2006-09-07 19:09:54 · answer #6 · answered by *only~wishful~thinking* 3 · 0⤊ 3⤋
Good luck
2006-09-07 19:06:42 · answer #7 · answered by hh 4 · 0⤊ 1⤋
1,500 x 1.045^(7) = 1,500 x 1.36 = 2,041
2006-09-07 19:08:11 · answer #8 · answered by en_vacances 7 · 1⤊ 0⤋
use this:
http://mathworld.wolfram.com/CompoundInterest.html
2006-09-07 19:08:04 · answer #9 · answered by Anonymous · 1⤊ 0⤋