Question

after 36 monthly deposits of $200 at 6% compounded monthly. find the amount of annuity

Answer 1

itd be 238.20 by the end of 3 years...

Answer 2

the answer in the back of my book says it should be 7867.22

Answer 3

Hmmmm... I think it might be asking something different... is that exactly what your book says as a question?

Answer 4

yes

Answer 5

do you have the formula it should be something raised to the pwer of rt

Answer 6

usually i just raise it to the power of n

Answer 7

i think the rt is coming in the next section

Answer 8

ohhh no you are correct! so what would the formula be with the rt?

Answer 9

wait nevermind that is to find the compound interest

Answer 10

i don't know off hand but i can probably find it in my notes somewhere if you don't have it written down somewhere

Answer 11

i don't think thats for annuity. the equation for annuity is A=P{(1+i)^n-1/i

Answer 12

i just can't seem to figure out how to use it for annually monthly and etc.

Answer 13

for this problem it is monthly

Answer 14

that's exactly what i used and i got that answer..i think the back of your book is wrong or something

Answer 15

can you show me how you set it up using the real numbers? and maybe we can figure it out

Answer 16

you get 636.72... I did like this A=200((1+.06)^3)-1)/.06

Answer 17

but what did you divide the .06 by?

Answer 18

by ((1+.06)^3)-1

Answer 19

but the .06 should be divided by the amount of time

Answer 20

which is what i cannot figure out

Answer 21

should it be 3 since its three years or 36 months?

Answer 22

this is the formula i was thinking of a=p(1+n/t)^nt

Answer 23

yeah it is 3..raised by the 3rd power..that's only where you use the 3

Answer 24

where do i use the 36?

Answer 25

you convert the 36 into years by dividing it by 12..so you get 3 years which is n

Answer 26

i should = the interest per pay period......so it should be %/the time

Answer 27

nah i just is interest...you can try that and see if you get the answer in the back of your book which i higly doubt..

Answer 28

okay lemme try!

Answer 29

ok kool...let me know what you get!

Answer 30

i can't figure it out!!!

Answer 31

can you please check to make sure its 200 not 2000? and the other numbers..just to make sure... :)

Answer 32

positive!!!!

Answer 33

ok... lets try again...

Answer 34

i'm almost positive you divide the % by the time

Answer 35

ok..

Answer 36

no?

Answer 37

honestly i just need help so obviously my method is wrong

Answer 38

I will help you.

Answer 39

i got it!!!!!!!!!!!!!!!!

Answer 40

using the formula a=p(1+n/t)^nt i got an answer of 11583.6 what did the book say it was?

Answer 41

really? what did you do?

Answer 42

okay so

Answer 43

its 200{1+(.06/12)^36 -1/(.06/12)

Answer 44

which gave me 7867.22

Answer 45

O damn...the whole time I was using 3 instead of 36...which gave me the wrong answer... I am glad you figured it out...:)

Answer 46

no you helped me!!! thank you!!!

Answer 47

Your welcome :)..Anytime... Students like you make me love this site :)