Pixel:

http://prntscr.com/hd5d5b

1 year ago
Pixel:

@Shadow

1 year ago
Pixel:

35000 x .04?

1 year ago
Pixel:

x 6

1 year ago
Shadow:

Do you know the formula for compound interest?

1 year ago
Pixel:

i haven't used it in a while

1 year ago
Shadow:

\[A(t) = p(1 + \frac{ r }{ n })^{nt}\] A = account balance p = Principal/initial amount r = interest rate n = times compounded per year t = time (in years)

1 year ago
Shadow:

Using the given information, can you input into our formula?

1 year ago
Pixel:

I need assistance because idk what is what here other than intrest and time in years

1 year ago
Pixel:

@Shadow

1 year ago
Shadow:

Sorry, was helping another user then they went offline ._. Initial amount = $35,000 Rate = 4% time = 6 years Can you tell me the number of times that they compound in a year?

1 year ago
Pixel:

no im sorry i dont know what that means yet

1 year ago
Shadow:

Okay let's analyze our question. After 6 years, what is the total amount of a compound interest investment of $35,000 at 4% interest, compounded quarterly? Our period of time is given as six years. Therefore we know that t = time (in years) will be six. Next it tells us that the investment is $35,000. This will be our principal, or initial amount. Also known as p. Next they tell us our interest rate, which is 4% Lastly, they say it is compounded quarterly. This means that they will compound four times in a year. n will be 4 (n = times compounded per year).

1 year ago
Shadow:

Other problems may say compounded monthly, as in such case n would be what number?

1 year ago
Pixel:

12?

1 year ago
Pixel:

sorry my pc crashed ;-;

1 year ago
Shadow:

Correct, so looking at our problem, we have identified our variables. Can you put our formula together?

1 year ago
Pixel:

A(6)=35000(1 + .04/48[or 24])^24 or 48

1 year ago
Pixel:

its not 48 its 72 sorry

1 year ago
Shadow:

How did you get 72?

1 year ago
Pixel:

12 months in a year = a compound 6 years

1 year ago
Pixel:

6 x 12 = 72

1 year ago
Shadow:

No so the question states that it is compounded quarterly, thus four times a year. I like to prepare people for the future, so that is why I brought up how other problems may say monthly, in which case you would put 12 instead of 4.

1 year ago
Pixel:

so its 24

1 year ago
Shadow:

So n is just 4, and for nt on the outside for our exponent, it is 4(6) = 24

1 year ago
Pixel:

I got a number that was close to C but i think i messed up in my math

1 year ago
Shadow:

You can show me your work and I can check it.

1 year ago
Pixel:

i used a calc

1 year ago
Pixel:

and got 47,680 something

1 year ago
Pixel:

i know it was 47,000 though

1 year ago
Shadow:

\[A(6) = 35,000(1 + \frac{ 0.04 }{ 4 })^{24} \]

1 year ago
Pixel:

PEMDAS?

1 year ago
Shadow:

Haha what?

1 year ago
Pixel:

parenthesis Exponents multiply divide addition subtraction

1 year ago
Shadow:

What about it?

1 year ago
Pixel:

do i use it

1 year ago
Shadow:

Yes, so Parentheses first, then exponent, then multiply

1 year ago
Pixel:

1.01

1 year ago
Shadow:

What? :)

1 year ago
Pixel:

1.01 x 1.01 x 1.01 x 1.01 x 1.01 x 1.01 x 1.01 x 1.01 x1.01 x 1.01 x 1.01 x 1.01 x 1.01 x 1.01 x 1.01 x 1.01 x 1.01 x 1.01 x 1.01 x 1.01 x 1.01 x 1.01 x 1.01 x 1.01

1 year ago
Pixel:

lol

1 year ago
Pixel:

1.26973464853

1 year ago
Pixel:

44440.7126985

1 year ago
Pixel:

i was right ;o

1 year ago
Shadow:

That is what I got as well :)

1 year ago