Use a simpler formula: A = P(1+i)^n
A = ??? (solving for this)
P = 5000
I = 4% / 12
n = 5*12 = 60
So in my math class I have decided to do a project on Annuties and Interest but I have run into a problem.
So this is the formula I use for it FV=PMT (1 + i)n -1 / i
i= Interest
n= number of compounding periods
PMT= Amount of Periodic Payment
FV= Future Value
So I had to make up my own Annuity and Interest problem and then solve it in a real life situation
So I decided to do this.
I want to invest $5,000 into a savings account at an interst of %4 compounded monthly. How much would it earn at the end of 5 years?
i= %4 (percent) / 12 (months)= %0.333 (repeating) per month in Interest.
n= (12)[months] x (5)[years]= 60[months]
PMT= $5,000
The equation is 5,000(1.0333)60-1/0.0333
IF I got everything right.
But for some reason when I try to calculate this I get a syntax error?
Any reason why this may be?