a 6,000.00 principal earns 8% interest compounded annually. after 35 years what is the balance in the account

Question

a 6,000.00  principal earns 8% interest compounded annually. after 35 years what is the balance in the account

luigi0210 · Answer

Do you know the formula?

anonymous · Answer

no but this is what i tryed. 6,000.00 times 35 and u get 210000 then i divided that by 8% and i got 16800

anonymous · Answer

but thats not right

tkhunny · Answer

Simple interest!  That is not what the question asks.

anonymous · Answer

what do u mean

tkhunny · Answer

You seem to be saying that you do NOT know any formula for Compound Interest, as you have just attempted a Simple Interest formula to solve this problem.

anonymous · Answer

i guess so

anonymous · Answer

can you just tell me how to get the answer and ill be on my way

tkhunny · Answer

I'm never in a rush.

Over a period of one year, Simple and Compound are exactly thee same.

Simple: 6000*(1 + 0.08) = 6480
Compound: 6000*(1 + 0.08) = 6480

Anything else comes out differently.

Two years:

Simple: 6000 + 480*2 = 6000 + 960 = 6960
Compound: 6000(1.08)^2 = 6000*1.1664 = 6998.4

Ten years:

Simple: 6000 + 480*10 = 6000 + 4800 = 10800.00
Compound: 6000(1.08)^10 = 6000*2.158925 = 12953.55

Can you do 35 years?

anonymous · Answer

where did you get 2.15892

tkhunny · Answer

$1.08^{10} = 2.158925$

anonymous · Answer

ok so 6000(1.08)^35 = 6000 * 14.78534 = 8871204000

anonymous · Answer

am i right??

tkhunny · Answer

You're missing a decimal place in there, somewhere.

anonymous · Answer

ive got another one for u??

tkhunny · Answer

Two minutes.

anonymous · Answer

ok

anonymous · Answer

a 4,000.00  principal earns 5%  interest compounded annually. after 4 years what is the balance in the account

anonymous · Answer

i tried the same thing as we didi up there but the answer i got isnt an answer choice

tkhunny · Answer

That is the exact same problem.  Change the numbers and do it!  Hurry up.  One more minute.

anonymous · Answer

i tried

anonymous · Answer

but the answer choice isnt on there

tkhunny · Answer

What did you get?  "I tried" doesn't tell me anything.

anonymous · Answer

5283900

tkhunny · Answer

You DO have to start using decimal points properly.  The answer absolutely is NOT 5283900.

What interest rate did you use?  What number of years did you use?

4000 (1.05^4) = ??

anonymous · Answer

i diid this 1.05^4 and got 4.2 then multipled that by 4000

anonymous · Answer

16800

anonymous · Answer

but thats not an answer choice

tkhunny · Answer

Did you try $4,679.43

My guess is that you need to get far more acquainted with your calculator and your formula.