Omg, I don't understand this at all!?

Question

I know this is really lame but I cannot figure out my math hwk!! And it's making me cry really hard! :'( None of my friends help me with any of my math hwk. They think it's annoying and I'm just like.. I help you with your spanish hwk and ENJOY helping you, why can't you help me? I'm nice to people.. why can't they return the favor? :(( Please help me!

Figure the compound interest and the ending balance or amount on deposit at the end of each time period.

1. $500 for three years at 6% compounded annually.
2. $1,000 for one year at 5% compounded quarterly.
3. $600 for two yaers at 5% compounded annually.
4. $2,000 for one year at 6% compounded quarterly.
5. Mr. Garcia's savings account pays 5.25% interest, compounded semiannually. If his balance on January 1 is $800 and he made no additional deposits or withdrawals, what would be his balance be on January 1 of the following year?

PLEASE! :(((

/M&#92;i/K&#92;E · Accepted Answer

Ugh I hate FA.

kai_raitei007 · Answer

Math of investment...

you need the formula F = P(1+ rt)^n
where:
F is the future value
P is the present value
r is the rate
t is the time e.g. yr,mo,day
n is the number of periods (1 for annual, 2 for semi annual, 4 for quarterly, 12 for monthly, etc...)

let us now answer...

1. P = $500, r = 6%, t = 3, n = 1

F = $500 (1 + 6%(3))^1

F = $590....answer


2. P = $1000, r = 5%, t = 1, n = 4

F = $1000 (1+5%(1))^4

F = $1215.50625......answer


3. P = $600, r = 5%, t = 2, n = 1

F = $600 (1 + 5%(2))^1

F = $660......answer

4. P = $2000, r = 6%, t = 1, n = 4

F = $2000 (1 + 6%(1))^4

F = $2524.95392......answer


5. P = $800, r = 5.25%, t=1(since it is specified as "the following year"), n = 2

F = $800 (1 + 5.25%(1))^2

F = $886.205......answer

? · Answer

500 dollars , annually means once a year, so..

500 x .06 is 30 dollars, we add that on to the 500 bucks, and begin our second year,
 530  x .06 is 31.80 dollars,  
our third year we would have 561.80,
561.8 x .06 is 33.71 dollars,

so in total we have 595.51 dollars.

for they quarterly one you would have to add you interest 4 times a year. hope this helps.

Anonymous · Answer

(Principal amount)(1 + i)^(n)

n = the number of times the interest is compounded
i = interest, IN DECIMAL FORM. Example: 6% = 0.06
Principal amount = however much money you're starting with

Final tip: don't major in business or econ

Shy Boi · Answer

When i saw this i was like OOOOOSHIIIT

Omg, I don't understand this at all!?

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