Find the present value of the deposit. $12,000 at 14% compounded quarterly for 8 years.

The formula we are given is
A = P [1+(r/m)]^(tm)

Question

Find the present value of the deposit. $12,000 at 14% compounded quarterly for 8 years.

The formula we are given is
A = P [1+(r/m)]^(tm)

anonymous · Answer

$$12000(1+\frac{.14}{4})^{8\times 4}$$

anonymous · Answer

ok what is up with latex?

anonymous · Answer

$$x^2$$

anonymous · Answer

damn

anonymous · Answer

lemme try another browser

anonymous · Answer

$$x^2$$

anonymous · Answer

oh seems to work now.  so first answer is the right one

anonymous · Answer

use a calculator and judicious use of parentheses to compute $$12000(1+\frac{.14}{4})^{32}$$

anonymous · Answer

I just figured out what I was doing wrong. Seems as if you get a different answer when you put the exponent as 8(4) as 32. Thanks for your help.

anonymous · Answer

yes because unless you use parentheses it is going to raise to the power of 8 and then multiply the result by 4