Question

You deposit $7,900 in a money-market account that pays an annual interest rate of 4.3%. The interest is compounded quarterly. How much money will you have after 3 years?

Answer 1

have you seen the 'single payment' compounding equation that looks like this:
\[FV = PV(1+i)^n\]

'FV = PV(1+i)^n

Answer 2

no I was only given

A=P(1+r/k)^n*k

Answer 3

ok, we will use that one then

Answer 4

I have nooo idea how to use it

Answer 5

we are solving for A,

A is the future amount A=?
P is the present value, so we were told 7,900, so p=7900
r is the interest rate, so 4.3%, but in decimal form so r=0.043
k is the how often it is 'compounded', it says quarterly, so k=4
n is how long, 3 years, so n=3

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

plug in the values

Answer 6

A=7900(1+0.043/4)^3*4

would you use the order of operations?

Answer 7

good work ^_^
yes, use order of operations,
A=7900 ( 1+ (0.043/4) )^ (3*4)

Answer 8

A=7900 (1+ (0.01075) )^ (12)

I feel like I did something wrong..

Answer 9

you are good, nothing worng, keep finishing out the math ^_^

Answer 10

A=7900 (1.01075)^12

now do I go from left to right or..?

Answer 11

when you get to here
A=7900 (1.01075)^12
you do this part first:
A=7900 ( (1.01075)^12 )
always do the power before the timesing

Answer 12

okay, so

A=7900 (12.129)

A=95,819.1

right?

Answer 13

close, i think there was some mix-up with the power.

we had this:
A=7900 ( (1.01075)^12 )

becomes
A=7900(1.1369)

Answer 14

well dang. so,

A=8981.51

Answer 15

correct ^_^

Answer 16

:D thank you!

Answer 17

yep ^_^