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Omg, I don't understand this at all!?
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! :(((
5 Answers
- 1 decade ago
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
Source(s): Sometimes, the world is just so unfair... you are lucky you have this math homework.... why? you are formidable by yourself, since you could help them and they could not help you... We are of the same feather... i can help but no one can help me... smile.. don't cry... for the world is full of thick skinned people... - 1 decade ago
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.
- Anonymous1 decade ago
(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
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