$1800 is invested at 10% compounded quarterly for four years. Find the amount at the end of four years. My answer is $2520.00 thanks for looking over this problem.
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$1800 is invested at 10% compounded quarterly for four years. Find the amount at the end of four years. My answer is $2520.00 thanks for looking over this problem.
Use the formula:
P=principal
r=interest in decimal form
n=number of interest periods per year
t=number of years invested
A=amount after t years
thanks for the formula I have one from my text book but I like yours better.
What is the formula from your textbook?Quote:
Originally Posted by kwtolley
-Dan
A=R[(1+i)^n-1 / i]
A=value of the annuity after n payments
n=number of payments
i=periodic interest rate
R=amount of each periodic payment
Hello, kwtolley!
This is NOT the formula for the problem you gave.Quote:
A=R[(1+i)^n-1 / i]
A=value of the annuity after n payments
n=number of payments
i=periodic interest rate
R=amount of each periodic payment
That is for an Annuity, where payments are made in the account periodically.
You problem had a one-time investment of $1800 which is left unchanged for four years.
{What you're doing is using the Distance Formula to find the price of eggs . . . ]