Question

Help.. Compounded quarterly and continuously

Answer 1

um..............

Answer 2

Quatrly means every 1/4th of a year the rate goes up?

Answer 3

@Nnesha

Answer 4

I have no clue I usually just go with compound daily and always get it right..

Answer 5

A= P(1 +r/n)^nt
A=Pe^rt

Answer 6

@freckles

Answer 7

n is the number of compounds per year
since it is being compounded quarterly that means the year has been divided up into 4 compoundings so use n=4 for the quarterly one

Answer 8

for continuous use the last formula you mentioned

Answer 9

Ummm okay

Answer 10

please let me know if you need anymore help

Answer 11

ummm okay sounds like maybe
but I'm not sure

Answer 12

I got 31394164.39

Answer 13

for which one?

Answer 14

A= P(1 +r/n)^nt

Answer 15

I have no clue what im doing on this one. Its my last question.

Answer 16

did you replace n with 4?

Answer 17

and r with the rate ?

Answer 18

and t with 2?

Answer 19

P with 11000 was also given

Answer 20

Oh gosh I replaced r with 4 -.-

Answer 21

Now I got 39966.45405

Answer 22

no n is the number of compoundings per year
quarterly means the year was divided up into 4 compoundings so n=4

Answer 23

that still seems a bit big

Answer 24

What? O.o

Answer 25

\[n=4 \\ r=.07 \\ P=11000 \\ t=2\]
all you do is plug in the formula and evaluate
\[P=11000(1+\frac{.07}{4})^{2 \cdot 4}\]

Answer 26

Yup thats what I did

Answer 27

I don't understand how you are entering it into the calculator then

Answer 28

you should be getting a number in the 12 thousands

Answer 29

in the 12000 to 13000 dollar range

Answer 30

can you show me what you enter
should be something like this
11000*(1+.07/4)^(2*4)

Answer 31

I dont know. I guessed quarterly and got it right. I got 100% on my test.

Answer 32

Ill try reentering it into my calc.

Answer 33

don't you want to learn to plug in the calculator though so you can get the right answer?

Answer 34

oh ok

Answer 35

Yes thats why I havent closed the question. I only had 30 seconds left so I took a guess. I do what to learn how to solve this one.

Answer 36

.This time I got 12637.69961 I think I might of mistyped numbers of something into my calculator.

Answer 37

also if you can find me a bank for me that let's me put in 11000 and I get like 30 something thousand back in 2 years sign me up :p

Answer 38

that's right for the quarterly one

Answer 39

maybe you were in a hurry because you were being timed

Answer 40

\[A=Pe^{rt} \text{ for the continuous one } \\ A=11000 \cdot e^{.0686 \cdot 2}\]

Answer 41

Near the last 4 minutes yes. I had 20 minutes just to work on this problem but no one was helping.

Answer 42

I got 43375.522

Answer 43

you must be mistyping something again

Answer 44

11000*e^(.0686*2)
make sure you have parenthesis around the exponent

Answer 45

Oops I did

Answer 46

oh i see what you did you drop the 0 between the decimal and the 6

Answer 47

I wonder if that is what you did earlier

Answer 48

drop the 0 between the decimal and the 7

Answer 49

12617.63291

Answer 50

yep that is exactly what you are doing

Answer 51

yeah 7 percent is .07 not .7

Answer 52

or 6.86 percent is .0686 not .686

Answer 53

\[A_q=12637.70 \\ A_c=12617.63\]
the quarterly one is approximately 20 dollars more

Answer 54

My 0 and . are right next to each other so I click the wrong one all the time its annoying.

Answer 55

Okay thank you!

Answer 56

i guess you will have to look up at the calculator screen to see what it registered next time...then hit backspace it anything needs to be fixed you know when it comes to hitting 0 and decimal
maybe not every button
I don't know I might check or whatever

Answer 57

but anyways good guess