Question

In order for Miles to purchase a boat in eight years, he will deposit $150 every quarter to a savings account with 2.98% interest, compounded monthly. What is the future value of this account in eight years?

Answer 1

Use the compound interest formula.

Answer 2

i did but the answer came out incorrect

Answer 3

nope...

$5,412.92

$5,426.36

$16,238.76

$16,279.09

Answer 4

Chloro can help u with this question, I misread it sorry. I haven't done compound interest since a year ago.

Answer 5

there's two steps to it.

Answer 6

okay thanks for trying.

Answer 7

@JayDS I'll try :)

Answer 8

=) , k

Answer 9

yeh sorry, I'm kind of helping someone else.

Answer 10

wow, the compound monthly is confusing.

Answer 11

-_- tell me about smh

Answer 12

@LovePink are you sure you post the correct choices?

Answer 13

yes

Answer 14

i'm wondering if they posted the right choices for me because the answer i get is no where near that

Answer 15

What formula are you supposed to apply?

Answer 16

the future value

Answer 17

FV = PV(1 + i)nt

Answer 18

Let me try something else!

Answer 19

k

Answer 20

man this is weird, even I want to know how to figure this one out.

Answer 21

Have you learned the ordinary Annuities formula?

Answer 22

http://www.moneychimp.com/calculator/compound_interest_calculator.htm for compound interest calculator.

Answer 23

FV = P [ ( 1 + r/12) ^ nt -1 ] / ( r/12)

Answer 24

Still it doesn't work, though!
That's why I think the choices are wrong!
Why don't you test the formula with other problems!

Answer 25

@JayDS -lol it's Advanced Algebra with Financial Applications

Answer 26

Yeah, it's formula from my Calculus book!

Answer 27

@Chlorophyll i was just working on that formula too....Ughh this question is just making me mad now ^_^

Answer 28

That's why I suggest you test the formula on other problem.

Answer 29

yeh, this is one tough question and I never did these type of Advanced Algebra with Financial Applications so I can't really help.

Answer 30

I think the book has typos!

Answer 31

yep, I would think so too.

Answer 32

Just let LovePink give a test drive with other question, then!

Answer 33

yep, well I can't help any further since I am stupid and haven't learnt what you are doing so I will be going. Be sure to check with your teacher on how to do it and whether or not one of the answers are correct.

Answer 34

Thanks guys but i'ma come back to question later cause something not added up work.

Answer 35

@JayDS " well I can't help any further since I am stupid and haven't learnt what you are doing" Never ever use this tone to yourself
Everybody's learning here, just the matter of time!
Indeed you're much more responsible than I am ;)

Answer 36

yes i agree with @Chlorophyll never sell yourself short @JayDS