Question

Calculate the future value when P=$7,500, R=9%, compounded monthly, and t=8 years. Round to the nearest cent.

Answer 1

I got r=.09 and P*R*T but not getting it still?

Answer 2

COMPOUND INTEREST

R = 0.09 -- The annual accumulation interest rate to be compounded monthly.
i = R/12 = 0.0075 -- The monthly interest rate.
s = 1+i = 1.0075 -- Monthly Accumulation Factor

\(7500\cdot s^{8*12}\)

Answer 3

OH boy you still there?

Answer 4

Did you do it?

Answer 5

so its 7500 and times 8 to 96 power????

Answer 6

8? No.. That's an "s". See the definition just above.

Answer 7

OH sorry thought it was a 8...so no havent got it yet

Answer 8

7,961.99????

Answer 9

is that right??

Answer 10

What value did you use for "s"?

Answer 11

1.0075

Answer 12

or is it 1 + 0.0075

Answer 13

Oh gosh Im confusing myself lol

Answer 14

I think not. You entered the interest rate and divided it by 12 a second time. That's no good. Whatever you did, use the 9% and it should come out.

Answer 15

Oh dear gosh I wish I was good at Math this is crazy.... so its 7500 * 1.0075* 0.09???? Im sorry I suck at math ...just this problem and Im done with this worksheet

Answer 16

Stop! Take a deep breath. Slow down.

How are you trying to do this. Calculator? Spreadsheet? Financial calculator? Paper and pencil? Just what is it you are doing?

Answer 17

LOL ok sorry been doing this since 3 this afternoon Im burning out.... Im using both paper and calculator on computer thats it

Answer 18

Does it have "scientific" functions? Most interesting would be one of these: \(x^{y}\) -- an exponent button.

Answer 19

No I wish It would help me out

Answer 20

Thats why its taking me so long I have to do it all on paper

Answer 21

We can use the calculator if it has a memory. How about \(M+\;or\;MS\) or something like that.

Answer 22

Whatever smartscore means up here Im not feelin it LOL.... it has M+ M- stuff like that

Answer 23

Okay, let's run a little test and then we'll be done in a jiffy.

Press these keys (or click buttons)

2 x =

Does it give 4 as the answer?

Answer 24

Ok let me try

Answer 25

yes

Answer 26

One more test.

2 x = x =

Just hit the "2" once and the the sequence "x =" twice. Does it give 16 as the result?

Answer 27

yes

Answer 28

Every time you hit the "x =" sequence, you SQUARED the number in the display. We are about to use this feature to our advantage.

Listen very carefully.

Type in the accumulation factor, 1.0075

Hit the "x = " sequence FIVE TIMES

That's 1.0075 x = x = x = x = x = and tell save the result or write it down here so I can check it out.

Answer 29

1.27011124

Answer 30

Perfect. Now hit "x =" one more time - with that number on the display. Tell me the result.

Answer 31

1.61318256

Answer 32

Exactly correct. One more thing, and then I'll explain what we just did.

Multiply that number by 1.27011124 and tell me the result.

Answer 33

it wont let me put the last 4 in?????

Answer 34

That's fine. Let's just see how close we can get.

Answer 35

2.04892116

Answer 36

That's it. Exactly correct (well, with the silly 4 missing, anyway.)

Explanation:

When we hit "x =" five times, we calculated \(1.0075^{32}\).

When we hit "x =" one last time, squaring the previous result, we created \(1.0075^{64}\).

When we multiplied them together, we managed \( 1.0075^{32}\cdot 1.0075^{64} = 1.0075^{96}.\) Exactly what we needed.

Multiply that by 7500 and we'll be done!

Answer 37

15,366!!!!!!! :) That is awesome!!!!

Answer 38

wow you made is so simple ha. :)

Answer 39

-) Now, go get a better calculator. That was way harder than it should be! Your phone probably has a scientific calculator app.

Answer 40

Yes I agree I do need one really bad!!

Answer 41

I do have more problems that no one on here can answer I mean no one I gave up...I dont want to bother you anymore but if you have time tomorrow or if you have time now up to you...they are stumping everyone and you seem amazing with math! :)

Answer 42

I have got to get me a new calculator!!!!! :)

Answer 43

Its on another worksheet :)

Answer 44

I wanted to also thank you for your time! :) means alot!

Answer 45

They can be downloaded

http://translateye.com/download/calculator.php

or just used online.

No worries. It's what we do around here!

Answer 46

OH thank you!!!! Im downloading it!!!!

Answer 47

We can get you through it. This is where I live some of the time. :-)

Answer 48

LOL oh good Im so glad :) did you want to help me tonight or tomorrow I dont know where you live maybe to late for you :)

Answer 49

East Coast USA - Past my bedtime! ZZZZZzzzz......

Answer 50

LOL I understand thats why I was checking...I will look for you on here tomorrow night then :) I really do appreciate all of your time :) I should go to bed too almost 11 :)

Answer 51

Thanks again!!!! Have a wonderful night!!!!!! :0)

Answer 52

There's the online one I was looking for!

http://web2.0calc.com/

Answer 53

OH THANK YOU!!!! have it saved to my desktop!!!!! Thanks alot!!!!!

Answer 54

Nighty Night :)