Results 1 to 4 of 4

Math Help - investment

  1. #1
    Member
    Joined
    Oct 2007
    From
    Nevada
    Posts
    188

    investment

    Ace invests his big bucks ($5000) in an account that earns 5% annually, compounded quarterly. How much would he earn in 1 year, if the account were compounded daily?
    Follow Math Help Forum on Facebook and Google+

  2. #2
    is up to his old tricks again! Jhevon's Avatar
    Joined
    Feb 2007
    From
    New York, USA
    Posts
    11,663
    Thanks
    3
    Quote Originally Posted by DINOCALC09 View Post
    Ace invests his big bucks ($5000) in an account that earns 5% annually, compounded quarterly. How much would he earn in 1 year, if the account were compounded daily?
    recall the compound interest formula.

    A = P \left( 1 + \frac rn \right)^{nt}

    Here A is the amount after time t, P is the principal (the original amount), r is the interest rate (written as a decimal), n is the number of times per unit time the principal is compounded, in this case, the number of times per year

    Just plug in and solve for A. then subtract the original amount from it to find how much was earned
    Follow Math Help Forum on Facebook and Google+

  3. #3
    Member
    Joined
    Oct 2007
    From
    Nevada
    Posts
    188
    when i plug in its not working out?
    Follow Math Help Forum on Facebook and Google+

  4. #4
    is up to his old tricks again! Jhevon's Avatar
    Joined
    Feb 2007
    From
    New York, USA
    Posts
    11,663
    Thanks
    3
    Quote Originally Posted by DINOCALC09 View Post
    when i plug in its not working out?
    what answer did you get? i got something like 5256.34 for the total amount at the end of 1 year
    Follow Math Help Forum on Facebook and Google+

Similar Math Help Forum Discussions

  1. investment problem
    Posted in the Business Math Forum
    Replies: 4
    Last Post: December 4th 2011, 06:52 PM
  2. an investment
    Posted in the Algebra Forum
    Replies: 3
    Last Post: September 8th 2010, 01:20 AM
  3. investment
    Posted in the Algebra Forum
    Replies: 3
    Last Post: August 12th 2010, 11:42 PM
  4. Investment
    Posted in the Business Math Forum
    Replies: 10
    Last Post: August 26th 2009, 11:05 AM
  5. X investment
    Posted in the Business Math Forum
    Replies: 4
    Last Post: August 22nd 2007, 12:04 AM

Search Tags


/mathhelpforum @mathhelpforum