a math question on logarithm?

Question

okay i've tried all tht i can.....here is the question...

Suppose that 1500 is invested at an interest rate of 8.5%. how much is the investment worth after 18 months if interest is compounded quarterly?....

if possible it would be really great if someone could tell how they got the answer....

Answer 1

I = P (1 + r/n)^(nt)

I = final price
P = principles
r=rate
n=compounding
t=time in years

quaterly means 4 times per year
18 months = 1.5 years
I = 1500 (1 + .085/4) ^ (4 * 1.5)
I = $1701.70

Answer 2

5 $

Answer 3

Interest is compounded every three months. So every three months, the balance in the account is multiplied by 1 + (0.085 * 3/12). This will happen six times during the 18 month period.

So the initial balance will be multiplied by (1 + (0.085 * 3/12))^6; so the final balance is 1500(1 + (0.085 * 3/12))^6 = 1500(1.02125)^6 = $1701.70 to the nearest cent.

Answer 4

A previous response is probably correct but hard to read. In a nutshell, we have P = 1500 (1 + 0.02125)^6 , which is $1701.27.

Answer 5

"Mathematics of interest rates
Simple Formulas

Formulas are presented in greater detail at time value of money.

In the formulas below, i or r are the interest rate, expressed as a true percentage (i.e. 10% = 10/100 = 0.10). FV and PV represent the future and present value of a sum.

These are the most basic formulas required by a new student:

FV = PV ( 1+i )^n\,

The above calculates the future value, (FV), of an investment, (PV) accruing at a fixed interest rate of i% for n periods. Also a=p(1+r/t)^nt can be used.

PV = \frac {FV} {\left( 1+i \right)^n}\,

The above calculates what present value (PV) would be needed to produce a certain future value (FV) if interest of i% accrues for n periods.

i = \left(\sqrt[n]{\left( \frac {FV} {PV} \right)} -1\right) \, or i = \left(\left( \frac {FV} {PV} \right)^\left(\frac {1} {n} \right)- 1\right),

The above two formulas are the same and calculate the compound interest rate i% achieved if an initial investment of PV returns a value of FV after n accrual periods."

Answer 6

assuming 8.5% per annum

(8.5 / 4 ) % per quarter = 2.125% per quarter

18 months = 6 quarters

required answer= 1500 [ 1 + 0.02125 ] ^6

or 1701.70

Answer 7

i imagine maths is all about loving.....if u practice and get alongside with it each answer is style of a puzzle it extremely is demanding yet when u conquer it u stands out because the happiest guy in the international....

Answer 8

I dont know .Thats 2 hard