Question

How much would $300 invested at 4% interest compounded monthly be worth after 8 years? Round your answer to the nearest cent.

here's the equation: A(t)=P(1+r/n)^nt

i just don't know what to put where please help

Answer 1

@Hero @mathstudent55

Answer 2

What I mean to ask is, what do you think each variable in the formula means?

Answer 3

Obviously t is in years, so 8 = t. You probably know that much at least.

Answer 4

is it a(8)=300(1+.06/1)^8 ??

Answer 5

@Hero

Answer 6

The 300 and the 8 is correct.

Answer 7

is that is?

Answer 8

it?*

Answer 9

There's more to it of course.

Answer 10

Okay, so the P is for the principal, which you figured out is $300.
The r is the interest rate which is 4% or .04.
And the n represents number of times compounded. You figure that out by multiply 8 years times 12 months per year. So n = 96.

Answer 11

so 8=300(1+.04/1)^96?

Answer 12

Where do you get the "1" underneath the fraction? Isn't that supposed to be "n". What did we say n equals?

Answer 13

Actually, n = 12, not 96

Answer 14

oh oops. 8=300(1+.04/12)^96 ?

Answer 15

So n represents number of times compounded per year which is 12.
So A(8) = 300(1.04/12)^{96} is correct.

Answer 16

is it 1.04 for the numerator? or 1+ .04/12?

Answer 17

Actually you have it right it's 1 + .04/12

Answer 18

I admit, I'm a little distracted atm. Not fully paying attention.

Answer 19

okay. how do i solve it?

Answer 20

At this point, it's just plug and play if you have the right calculator you should be able to calculate A(8).

Answer 21

am i solving for a?

Answer 22

You're finding A(8). Everything on the right side of the equation only has to be calculated.

Answer 23

\[A(8)=300(1+\frac{ .04 }{ 12 })^96\]

Answer 24

like this? i tried to put the 6 up next to the 9 but it didn't work

Answer 25

@Hero

Answer 26

Use brackets

Answer 27

\(A(8)=300\left(1+\dfrac{ .04 }{ 12 }\right)^{96}\)

Answer 28

i keep getting 51.61

Answer 29

the answer choices are
a) $412.92
b) $410.57
c) $308.10
d) $484.25

Answer 30

do you get 51.61?

Answer 31

@Hero

Answer 32

Hang on

Answer 33

I get 412.918...

Answer 34

oh! okay. i see how you got that. thank you!!

Answer 35

You're Welcome bro.