How can i count this easier???
2500*(1,0525)^5+2500*(1,0525)^4+2500*(1.0525)^3+25 00*(1.0525)^2+2500*(1,0525)^1= 14612.10382
How could i count this without writing allt this down?
Funny because I'm getting 322914659677371145062500 doing it both ways. Not what you got. How did you get such a small answer?
-Dan
Edit: Oh, I get it now. It isn't 10125 it is 1.0125. (The comma-decimal point thing gets me in the end again!) Still, I get the same answer using both expressions: 14612.103817994
-Dan
Rambo,
That is the Accumulated Value of an annuity due series. There is a standard formula for that:
Your Common Term or payment is 2500.
Your Sum of the Series:
Payment * ((1 + i)^n - 1) * (1 + i)/i
In your textbook, they might refer to d, which is i/(1 + i).
That being said, i is .0525, payment is 2500, and n is 5. Using that formula, I match your numbers to the decimal place.