Question

Last Question, Please Help!
Jose invests $3,250 at 6% interest compounded annually. What will be the balance in the account after 3.5 years?

Answer 1

@nothingwasthesame

Answer 2

I think its 3,250 x .06

Answer 3

what about the 3.5 years? Where is that?

Answer 4

em.

Answer 5

Haven't done these in a while...

Answer 6

oh.. I know

Answer 7

so 3250 x .06 every year

Answer 8

a balance formula might be useful ....

Answer 9

find that answer out then times it by three. then find half of 3250 x .06 and that will be your answer

Answer 10

or exceling it

Answer 11

yes I will make a formula

Answer 12

umm that doesn't make sense because it says "compounded annually" wouldn't there be a formula for that somewhere?

Answer 13

\[B_n=B_ok^n-P\frac{1-k^n}{1-k}\]

Answer 14

amistre64 will help you I got to go :)

Answer 15

P payments is 0, leaving us the compounding balance

Answer 16

k is the compounding periodic rate, in this case (1+r/1)

Answer 17

B(3.5) = 3250(1+.06)^(3.5)

Answer 18

i was reading it as a loan making payments to start with .. gotta slow down the reading lol

Answer 19

I got 3985.2345741 and simplified it to 3985.23, is that correct?

Answer 20

should be, let me dbl chk with a spreadsheet runthru to be sure

Answer 21

ok

Answer 22

it seems fine.

i was pondering that last half year but it should be fine.

Answer 23

B(0) = 3250
B(1) = 3250(1.06)
B(2) = 3250(1.06)(1.06)
B(3) = 3250(1.06)(1.06)(1.06)

but then we add only half the interest to it, .03 for half the year

B(3.5) = 3250(1.06)(1.06)(1.06)(1.03)

Answer 24

ok, Thank You :D

Answer 25

the formula, and the brute math differ by a few cents ...

Answer 26

good luck