Question

$75000 invested 15 yrs 5% interest per year how do i put this into a formula thanks in advance

Answer 1

\[A = P(1+\frac{r}{n})^{nt}\]

Answer 2

P = principal amount (the initial amount you borrow or deposit)
r = annual rate of interest (as a decimal)
t = number of years the amount is deposited or borrowed for.
A = amount of money accumulated after n years, including interest.
n = number of times the interest is compounded per year

Answer 3

\[A=75000(1+\frac{0.05}{1})^{1*15}\]

Answer 4

thank you kind sir, my brain has gone to mush for some reason :)

Answer 5

You're welcome :)

Answer 6

are you able to put that into a excel sheet?

Answer 7

A = Principal_Cell*(1+Rate_Cell/Number_Of_Times_Cell)^(Number_Of_Times_Cell*Number_Of_Years_Cell)

Answer 8

damn its the ^ i kept missing out
i suppose at 55 i should not try to get my diploma lol

Answer 9

Never too late to learn :D

Answer 10

true that

Answer 11

may i ask you 1 more question?

Answer 12

Go ahead

Answer 13

how would i write a formula say for retirement deposit to get x in 15 yrs at 5% compounded

Answer 14

i want to retire in 15 yrs how much deposit would i have to put down to reach my target say $50000 hope that explains better

Answer 15

that should see me through for a few years :)

Answer 16

Well now you're just using the same formula, only trying to find P instead of A, and your A is 50000

Answer 17

as simple as that? OMG

Answer 18

alziemers kicked in already damn

Answer 19

Yes, P is the principle amount (what you need to invest initially), A is the resulting amount.