Question

Quick question!!! FAN AND MEDAL

Answer 1

At the end of two years, what would the total savings be on a principal of $1000 at 6% annual interest, compounded monthly?

Answer 2

A) $1123.60 B) $1125.51 C) $1126.49 D) $1127.16

Answer 3

We can set up a function:

\(f(x) = 1000(1.06)^x\)

Where 'x' is months.

Now, how many months are in 2 years?

Answer 4

24

Answer 5

Interest = Principal * Rate * Time

Answer 6

just substitute the values @bobbyjane

Answer 7

Yes, so plug in 24:

\\(f(x) = 1000(1.06)^{24}\)

Now what's \(1.06^{24}\)

Answer 8

I'm doing something wrong..

Answer 9

4.04893464

Answer 10

I believe you use I = prt

Answer 11

Hold on

Answer 12

@bobbyjane This is a simple interest problem.

Answer 13

the way i know how to set it up is savings=principle (1= rate over time) ^time

Answer 14

but i dont know how to combine the 2 formulas together because its asking a 2 part question

Answer 15

and @kliedako ik that

Answer 16

but i still need help figuring out how to solve this one

Answer 17

use this site: http://www.csgnetwork.com/interestcomplexsavcalc.html

Answer 18

with that i got 1061.68 which isnt an option

Answer 19

this is a two part question as i said so a calculator wont be of much assistance but thanks anyways

Answer 20

i cant move on from this question until i solve it

Answer 21

@iGreen.

Answer 22

guys....

Answer 23

well thanks for nothing. obviously this site is no good for tutoring as its promised to be...whatever.

Answer 24

@bobbyjane ey i got it. its 1127.16

Answer 25

http://www.math.com/students/calculators/source/compound.htm