Question

The formula for determining interest compounded monthly is A = P(1 +r/12 )12t, where A represents the amount invested after t years, P the principal invested, and r the interest rate. Jimmy invests $1,500 at an interest rate of 10% for 4 years, while Jenny invests $1,500 at an interest rate of 5% for 6 years. Determine the amount of return gained by Jimmy and Jenny. In complete sentences, summarize your results.

Answer 1

Basically, just plug in the numbers they gave you into the equation and compare the results each person.

Answer 2

Jimmy-1,500(1+(.10/12))^48
1,500(1+.008)^48


Jenny-1,500(1+(.05/12))^12(6)

Answer 3

is that what I'm supossed to do? I'm not done yet.

Answer 4

Yes, now just solve

Answer 5

Okay thank you!

Answer 6

Wait, are you doing those equations to the power of 47 and 12?

Answer 7

You just multiply

Answer 8

uhmmm it was 48 for the months on the first one and 72 for the second one

Answer 9

because the exponents are supposed to be the months.

Answer 10

Yes, but it seems you are doing 1,500(1+(.10/12))^48 rather than 1,500(1+(.10/12))*48

Answer 11

You just multiply that by the rest of the equation, not use it as an exponent

Answer 12

In the equation the 12t is an exponent.

Answer 13

it just doesnt show up when I copy and paste

Answer 14

Oh, okay, it's fine then.