A = P(1 + i)n
A = Future Value
P = Present Value
i = interest rate per period
n = number of compounding period

Important Reminders:
• Use a banker's year: 1 year = 360 days
• Don’t round off an answer until the final step.
• Round all final answers to the nearest cent (hundredth) or the nearest tenth of a percent (thousandth).
________________________________________
A. Find the future value of each of the following deposits.

1) P = $345, 10 years, 6% compounded annually

Question

A = P(1 + i)n
	A = Future Value
P = Present Value
i = interest rate per period
n = number of compounding period

Important Reminders: 
•	Use a banker's year:    1 year = 360 days
•	Don’t round off an answer until the final step.
•	Round all final answers to the nearest cent (hundredth) or the nearest tenth of a percent (thousandth).
________________________________________
A. Find the future value of each of the following deposits. 

1) P = $345, 10 years, 6% compounded annually

phi · Answer

in 
$$ A= P(1+i)^n $$
for 1) P = $345, 10 years, 6% compounded annually 
what is P?
what is i?
what is n?

anonymous · Answer

P= Principal cash 
I= Interest rate
N= # of times compounded

phi · Answer

yes, but from the problem, can you assign them numbers?

anonymous · Answer

A=$345(1+.06)^10
is that right?

phi · Answer

yes
you can simplify 1+0.06 to 1.06
type
345*(1.06)^10= 
in the google search window
(or use your calculator)

phi · Answer

i get 617.842455

round to the nearest penny: the digit after .84 is 2 . 2 is less than 5 so round to 0.84
617.84 is the answer.

anonymous · Answer

yah i got 617.8424553 to.

anonymous · Answer

THX!!!

phi · Answer

be sure to round it to the nearest cent.