OpenStudy (anonymous):

can someone please help me with the formula for this problem the chart for the problem only goes to 10 years.Carla Lopez deposits 3,000.00 in retirement account the funds have an average of 9% over the 40 tears until her retirement what will be the value of her retirement account

5 years ago
OpenStudy (anonymous):

It's not clear to me that the funds are compounding over the 40 years. If we could see the chart that would help. However, if there is compounding over the period the value would be $94,228 5 years ago OpenStudy (anonymous): You say that you have a chart that goes to ten years. What is the value at 10 years? 5 years ago OpenStudy (anonymous): 45579 5 years ago OpenStudy (anonymous): i got the answer but I dont cheat I need to find out the formula for the answer 5 years ago OpenStudy (anonymous):$45,579 seems big to me unless there is a $3,000 per year contribution over the ten years. 5 years ago OpenStudy (anonymous): the chart for 10 years at 9% is 15.193 aren't I suppose to multiply the 3000* the 15.193 5 years ago OpenStudy (anonymous): its only 1 deposit of 3000 5 years ago OpenStudy (anonymous): Hold on FV = [ 3,000 ( 1.09 ) ^10 - 1] / .09 5 years ago OpenStudy (anonymous): what do I do with the 10 5 years ago OpenStudy (anonymous): Power 10 5 years ago OpenStudy (anonymous): i am so confused 5 years ago OpenStudy (anonymous): From 10 years, the future value is$45, 579

5 years ago
OpenStudy (anonymous):

Therefore, all you do is to plug in 40 yrs, instead of 10 yrs.

5 years ago
OpenStudy (anonymous):

is it 3000*1.09 to the 10th power -1 =

5 years ago
OpenStudy (anonymous):

but how

5 years ago
OpenStudy (anonymous):

Just plug into your calculator!

5 years ago
OpenStudy (anonymous):

once i get the answer to the 10th power do I multiply it by 40 years

5 years ago
OpenStudy (anonymous):

No, instead of plug number 10, replace it by 40!

5 years ago
OpenStudy (anonymous):

what do you get for the answer I have 3000*1.09-1 = 3269.0o to the 10th power is to much. we have a financial chart that we go by your correct because I see your example on another problem in the book

5 years ago
OpenStudy (anonymous):

I don't know what calculator you are using, but mine TI 89 shows: $1,013, 650 5 years ago OpenStudy (anonymous): in the book its 15.193 for ten years at 9% what do I mulyiply by the 15.193 5 years ago OpenStudy (anonymous): For 10 yrs, I got$45,579

5 years ago
OpenStudy (anonymous):

I did to but what do I do with it th 45579

5 years ago
OpenStudy (anonymous):

It just a test to prove which formula to apply!

5 years ago
OpenStudy (anonymous):

I'm still not sure how you came up with your formula. My book says that the future value of a single sum is FVSS=PVSS(1+i)^n.

5 years ago
OpenStudy (anonymous):

@marshallinwashington It's the formula specialized for business application!

5 years ago
OpenStudy (anonymous):

It's the same formula that my HP12c is using. So yes.

5 years ago
OpenStudy (anonymous):

your formula was correct but I don't understand the 40 years do the problem step by step so I can understand I havent been in college for over 20 years just going back FV = [ 3,000 ( 1.09 ) ^10 - 1] / .09 explain this Is fv= 3000*1.09-1 to the 10th power

5 years ago
OpenStudy (anonymous):

In order to calculate the retirement after 40 yrs, power to 40: FV = [ 3,000 ( 1.09 ) ^40 - 1] / .09

5 years ago
OpenStudy (anonymous):

oh ok give me 1 min and i will send you the answer and can you check it please

5 years ago
OpenStudy (anonymous):

Okie dokey!

5 years ago
OpenStudy (anonymous):

do I multiply 1.09 to the 40th power

5 years ago
OpenStudy (anonymous):

power, not multiply!

5 years ago
OpenStudy (anonymous):

like 2^3 = 8

5 years ago
OpenStudy (anonymous):

i thought im suppose to multiply 1.09*40 than multiply the answer by 40 until i do it 40 tmes

5 years ago
OpenStudy (anonymous):

Nope, all I do is enter into my calculator: 3000 ( 1.09^40 - 1) / .09

5 years ago
OpenStudy (anonymous):

Yes, power 40 means repeated multiply 40 times!

5 years ago
OpenStudy (anonymous):

1.09 * 1.09*1.09*1.09*1.09 40 times right

5 years ago
OpenStudy (anonymous):

so the shortcut is power! instead of manually multiply!

5 years ago
OpenStudy (anonymous):

Did you enter what I showed you into your calculator?

5 years ago
OpenStudy (anonymous):

did you get 36925.94

5 years ago
OpenStudy (anonymous):

= $1, 013,647.34 5 years ago OpenStudy (anonymous): how 5 years ago OpenStudy (anonymous): for 40 yrs 5 years ago OpenStudy (anonymous): so once I multiply 1.09 40 times then what do I do 5 years ago OpenStudy (anonymous): do I / by .09 5 years ago OpenStudy (anonymous): Pls do you know what difference between multiply and power? 2^3 = 8 2 * 3 = 6 5 years ago OpenStudy (anonymous): yea 1.09 *1.09 40 times right 5 years ago OpenStudy (anonymous): You need to purchase the right calculator, otherwise the result won't be precisely! 5 years ago OpenStudy (anonymous): i just pulled up a sciencetific calculator 5 years ago OpenStudy (anonymous): So use exponent! 5 years ago OpenStudy (anonymous): i got the same answer as you thank you for being very patient with me and god bless you10136.4734 5 years ago OpenStudy (anonymous): Just memorize the formula, you'll need it :) 5 years ago OpenStudy (anonymous): yea I wrote it down thank you thank you thank you very much 5 years ago OpenStudy (anonymous): I guess that's all I know ;) 5 years ago OpenStudy (anonymous): You are awesome goodnight 5 years ago OpenStudy (anonymous): Anyway, just message me when you need help! 5 years ago OpenStudy (anonymous): ok thank you 5 years ago OpenStudy (anonymous): Don't forget to click on the blue "Best Answer" as thank you! 5 years ago OpenStudy (anonymous): Nett-Nett, Chlorophyl's formula is the future value of an annuity. Which means there was a$3,000 deposit each year. So the high number now makes some sense.

5 years ago
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