How do I set this p?

Use the compound interest formula to compute the total amount accumulated. $10,000 for 20 years at 5% compounded annually.

A. $20,000.00 B. $25,269.50 C. $19,500.00 D. $26,532.98

Question

How do I set this p?

Use the compound interest formula to compute the total amount accumulated. $10,000 for 20 years at 5% compounded annually.

A. $20,000.00  B. $25,269.50  C. $19,500.00  D. $26,532.98

anonymous · Answer

post the formula

anonymous · Answer

A=P(1+r/n)^(nt)

anonymous · Answer

$$
P= P_0\left(  1 + r)   \right)^n
$$

anonymous · Answer

r as a decimal rather than a percentage, n as the number of compoundings per year, and t as the time in years.

anonymous · Answer

$$
10000(1.05)^{20}
$$

anonymous · Answer

Looks right

anonymous · Answer

. $26,532.98

anonymous · Answer

10,000 *(1+.05)^(20)  

D

anonymous · Answer

that s 2 diferent formulas you guys are givin me. so witch one is it?

anonymous · Answer

Yep.  That looks right.

@LilRyG - They're both right

anonymous · Answer

well the one with the n the n is just one. :)

anonymous · Answer

Except n means something different in her formula.

anonymous · Answer

n represents the number of years.  Hers is only good for annual compounding.

anonymous · Answer

A=P(1+r/n)^(nt)    the n is used to manipulate it to yearly quarterly or monthly

anonymous · Answer

with 1 it is yearly

anonymous · Answer

with n=12 montly

n=12/4  quarterly

anonymous · Answer

okay thank you guys!!

anonymous · Answer

de nada :)