Question

Linda invests $5000 into an account that pays 11% compounded quarterly. How much interest will she get after 5 years?

Answer 1

Is her gain reinvested instantly or paid out?

Answer 2

i dont no. thats the exact question. i copied n pasted it

Answer 3

http://en.wikipedia.org/wiki/Compound_interest
It is revinvested. That means you have to calculate \[5000\cdot 1.11^{4\cdot 5}\]

Answer 4

wait how do i write 11% ??? 0.11 or 1.11 ??? ... and i dont no how to do that equation on a calculator

Answer 5

the final answer is 35311.56$

Answer 6

you do it like this:

Answer 7

11% = 0.11 but the original sum remains there too, so you have 1 + 11% = 1.11

Answer 8

\[5000(1+(11/100))^{5*4}\]

Answer 9

got it?

Answer 10

this is how i wrote it .. .A = 5000 (1 = 0.11/4) 4x5

Answer 11

no, that is wrong

Answer 12

i cant seem to figure that out on a calculator, u told me the answer but i cant get it on the calculator

Answer 13

Is it 11% anually or quarterly?

Answer 14

i meant to write 1 + 0.11

Answer 15

quarterely

Answer 16

ok, the full formula for compound interest is this \[A=P(1+rate)^{number of years * timez per year}\]

so the timezperyear is 4 in your case as there are 4 quoters in a year

Answer 17

Ok, so that /4 was a mistake of yours.

Well, what kind of functions does your calculator have? Is there a button that says "a^b" or maybe "x^y" ? Or otherwise there maybe buttons for "exp" and "ln"

Answer 18

umm im doing it on my cellphone calculator so no

Answer 19

in a calculator it would look like A=P(1+rate)^(numberofyears∗timezperyear)

Answer 20

damn, you should get a casio fx series

Answer 21

you can also do it on google or wolframalpha

Answer 22

http://cgi.ebay.com/Casio-FX-82MS-Scientific-2-Line-Display-Calculator-82ms-/120706498016?pt=Calculators&hash=item1c1aaafde0

Answer 23

or even better this: http://cgi.ebay.com/Brand-New-Casio-FX-991ES-Scientific-Calculator-/260592979882?pt=Calculators&hash=item3cac8d4faa

Answer 24

sooo how do i write down the equation

Answer 25

it can solve integrals, derivatives, logarithms, anything

Answer 26

http://www.google.com/#hl=en&sugexp=ldymls&xhr=t&q=5000*(1%2B0.11)^(4*5)&cp=19&pf=p&sclient=psy&aq=f&aqi=&aql=&oq=5000*(1%2B0.11)^(4*5)&pbx=1&bav=on.2,or.r_gc.r_pw.&fp=c99decee79d1fe4a

Answer 27

like this:

A = 5000(1+(11/100))^5∗4

Answer 28

which is:

= 5000(1.11)^20

Answer 29

which is A = 5000 * 8.062311536
= 40311.55768

so now to get the compound interest
subtract the 5000 from the answer,
CI=40311.55768-5000
=35311.56

Answer 30

ok thank uu

Answer 31

one more?? Using the rule of 72, how long will it take to double your money if you invest in an account earning 3% interest? Give units of time (days, weeks, months, or years)

Answer 32

24 years

Answer 33

ok i got it right thx :)

Answer 34

you just divide 72 by the percentage

Answer 35

wat does it mean tho by give units of time (days,weeks, months, years???

Answer 36

or, if the question asks you how long it takes for the money to halve, divide 72 by percentage :)

Answer 37

it is there because the answer is not always in years, for example, if a question asks you how long it takes to double your money if you invest in an account earning 80% interest.

It is IMPOSSIBLE in real life, but some questons might ask that, so, 72/80=0.9, which is 0.9 year, which is 365/10*9=328.5=329days

Answer 38

get it? but most of the times the answer is in years, so dont worry

Answer 39

can you see if these are right for me please.
6. Find the simple interest on $500 for 3 years at 7%.
is it like this 500 x 0.07 x 3 = $105

7. Find the simple interest on $800 at 8.75% for 100 days.

is it like this $800 x .0875 x 100/365 = $19.18

Answer 40

6. is right
7. is right

Answer 41

sweet thanks and is this one right ... (last one)

How much money would you have to invest to make $300 within 2 years if the interest rate was 4.5%?

is the answer $3333.33

Answer 42

i think like 3 diff people gave me different answers, so im so confused!!

Answer 43

thats right