Question

@Hero i have another problem just like the last one i think i did something wrong

Answer 1

FV=PV(1+rt)
4,298.55=1,987.22(1+15r)
divide both sides by 1,987.22=2.1630
subtract 1=1.1630
divide by 15 that=0.077
7.7%
not even close to the answer im supposed to get

Answer 2

@ranga can you help me please

Answer 3

i think im supposed to use compound interest to solve

Answer 4

yes i think unless i did it wrong. i got 7.7% when my options are
5.2%
0.4%
13.3%
5.8%

Answer 5

yes the problem says angela currently has an account balance of $4,298.55. She opened the account 15 years ago with a deposit of $1,987.22. If the interest compounds monthly, what is the interest rate on the account?

Answer 6

i got 21.06

Answer 7

@Shorthell, you are not paying close enough attention to what equations to use.

Answer 8

For simple interest, you use the simple interest formula. For compound interest, you use compound interest.

Answer 9

yes i have tried the compound interest formula. the formula is A=P(1+r/n)^nt

Answer 10

180 months in 15 years

Answer 11

@shorthell, you need to use the appropriate formulas for the problem.

Answer 12

the compound formula correct.

Answer 13

You are working on Future Value and Present Value. I gave you the formulas earlier. Yes, but it is appropriate to use the formulas in proper context.

Answer 14

i have went back to that question earlier and tried doing this problem i just cant get it

Answer 15

All you need is the formulas for FV and PV as they apply to either simple interest or compound interest...both of which I gave you in the last question.

Answer 16

It's not that difficult. You just apply the proper formula. You won't be able to use just one formula for every problem.

Answer 17

so i use the FV=PV(1+rt)? or the

Answer 18

That's for simple interest as I already explained in the last question you posted.

Answer 19

this is the only other formula we talked about in the last question. fail i mean FV=PV(1+i)^n

Answer 20

And that is for compound interest. Now which one do you think you are supposed to use here? Re-read the problem again.

Answer 21

compound

Answer 22

4,298.5=1,987.22(1+i)^15

Answer 23

Now, what do you think the t stands for? Years or number of times compounded?

Answer 24

number of times so instead of 15 would it be 12 or 180

Answer 25

Number of months compounded in this this case. Which is (12)(15) = 180

Answer 26

so4,298.5=1,987.22(1+i)^180

Answer 27

so just to be clear, t = 180

Answer 28

Yes, correct.

Answer 29

You know how to solve the rest (I hope)

Answer 30

divide both sides by 1,987.22

Answer 31

subtract 1 then divide by 180

Answer 32

Now, hang on there.

Answer 33

You have to pay attention to what you are doing.

Answer 34

I know what we did last time, but look at this set up we have here. The 180 is an exponent, correct?

Answer 35

correct i see

Answer 36

So that means we can't just divide by 180

Answer 37

If you knew logs, your life would be a lot easier

Answer 38

The truth is, the 1 + r = b

Answer 39

4,298.5=1,987.22(b)^180

Answer 40

i am confused. you do divide first correct

Answer 41

You're confused because you don't know what to do with the exponent.

Answer 42

There's two ways to solve it. You can either take logs or you do can take the 180th root of both sides.

Answer 43

You have to learn one of those methods.

Answer 44

can you teach me how to log?