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)

Answer 1

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

Answer 2

ok what is up with latex?

Answer 3

\[x^2\]

Answer 4

damn

Answer 5

lemme try another browser

Answer 6

\[x^2\]

Answer 7

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

Answer 8

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

Answer 9

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.

Answer 10

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