Question

Cramming for finals, please help!!
1.) Formula A=P(1+r/n)^nt to find the total amount of money accumulated at the of the time given.
$1400 for 8 years at 7% compounded quarterly

2.) Same formula; $200 for 5 years at 5% compounded annually.

3.) Suppose that the cost for producing a certain item is C(n)=4n-6 where n is the number of items produced. Compute C(200), C(500), C(650), and C(1300)

Answer 1

so n here would be quarterly

Answer 2

or 4

Answer 3

P = 1400
t = 8
n = 4

Answer 4

wait for the first one wouldnt r=.07 ?

Answer 5

yeah, sorry

Answer 6

if something is compounded quarterly, does that mean n=4 or n=1/4?

Answer 7

okay so would the formula look like this:
\[A= 1400(1+\frac{ 0.07 }{ 4 }^{4(0.07)}\]

Answer 8

ok yeah i just looked it up, n=4 is the number of times compounded per year

Answer 9

so that is the correct formula to solve

Answer 10

except, the exponent is n*t which is 4*8

Answer 11

oh okay

Answer 12

\[1400(1+\frac{ 0.07 }{ 4 })^{^{4*8}}\]

Answer 13

i get 2439.1 about

Answer 14

for part B)
n = 1
P=200
t=5
r=0.05

Answer 15

Okay that's what I got too.

Answer 16

for the second one i got 255.26 about

Answer 17

@DanJS

Answer 18

um

Answer 19

yeah same here

Answer 20

Do you know how I'd do the 3rd one? @DanJS @iambatman

Answer 21

yeah just put in those 4 different numbers for n

Answer 22

C(n) = 4n-6

Answer 23

Oh okay lol sorry

Answer 24

@DanJS it says our answer for the first one is wrong