I need help with this problem:
$2250 is deposited in an account that pays 6% annual interest, compounded quarterly. Find the balance after ten years.
Thanks in advance!!
2006-11-20 12:09:40 · 5 answers · asked by Mia16 3 in Science & Mathematics ➔ Mathematics
The formula for compound interest is, IIRC:
p(1 + r/t)^ty, where p = principle, r = interest rate, t = times per year interest is compounded, and y = years.
2250(1.015)^40 = $4081.54
2006-11-20 12:14:26 · answer #1 · answered by bgdddymtty 3 · 0⤊ 0⤋
A=P(1+r/100)^n
=2250(1+6/100)^40
=2250(53/50)^40
2006-11-20 12:14:57 · answer #2 · answered by Dupinder jeet kaur k 2 · 0⤊ 0⤋
A (t) = P (1+r/n)^nt
A (t) = amount after t years
P = principal amount
r = interest rater per year
n = number of times componded pre year
t = number of years
A(t)=2250(1+0.06/4)^(4)(10) = 4081.54
r = 0.06 because 6 % = 6/100
n= 4 because its compounded 4 times every year
2006-11-20 12:16:50 · answer #3 · answered by Dan 2 · 0⤊ 0⤋
buy the teacher's manual.
or at least a financial calculator
excel has one built in to it
look for "future value calculation" in the help menu
2006-11-20 12:14:35 · answer #4 · answered by mgd1k 3 · 0⤊ 0⤋
I come up with 4081.54, using the following calculator:
http://tinyurl.com/46syn
Cave
2006-11-20 12:15:37 · answer #5 · answered by caveman 3 · 0⤊ 0⤋