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Math Help - A=P(1+r/n)^(n*t) Help?

  1. #1
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    Post A=P(1+r/n)^(n*t) Help?

    I missed the class we discussed this, could someone help me with it? thanx alot.

    Use the formula A = P ( 1+r/n ) ^(n*t)


    A=P(1+r/n)^(n*t)
    to find the amount of money in an IRA
    account after 55 years if $350 is
    deposited into a savings account
    at 6.75% interest per year but
    compounded daily, so n=365.
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  2. #2
    Rhymes with Orange Chris L T521's Avatar
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    Quote Originally Posted by AFan View Post
    I missed the class we discussed this, could someone help me with it? thanx alot.

    Use the formula A = P ( 1+r/n ) ^(n*t)


    A=P(1+r/n)^(n*t)
    to find the amount of money in an IRA
    account after 55 years if $350 is
    deposited into a savings account
    at 6.75% interest per year but
    compounded daily, so n=365.
    All you do here is pretty much "plug-n-chug":

    A=350\left(1+\frac{0.0675}{365}\right)^{365(55)}

    Use your calculator to approximate this value.

    --Chris
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  3. #3
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    would it be 20594.10? thats tricky when punching it in on the calculator.. lol
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  4. #4
    Rhymes with Orange Chris L T521's Avatar
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    Quote Originally Posted by AFan View Post
    would it be 20594.10? thats tricky when punching it in on the calculator.. lol
    I get 14329.70.

    How did you plug it into the calculator?

    --Chris
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  5. #5
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    350(1+(0.0675/365))^365(55)
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  6. #6
    Rhymes with Orange Chris L T521's Avatar
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    Quote Originally Posted by AFan View Post
    350(1+(0.0675/365))^365(55)
    Ah...be careful with this:

    This is how the calculator interprets this:

    350\left(1+\frac{0.0675}{365}\right)^{365}\cdot 55

    It should be 350(1+(0.0675/365))^(365(55))

    --Chris
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  7. #7
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    Wow, you are absolutely amazing do u know that?? lol I got ur answer, thank you so much... this place is incredible just absolutley wonderful!!!! lol
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