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Math Help - Amount at the end of 4 years?

  1. #1
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    Question Amount at the end of 4 years?

    $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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  2. #2
    Eater of Worlds
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    Use the formula:

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

    P=principal
    r=interest in decimal form
    n=number of interest periods per year
    t=number of years invested
    A=amount after t years
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  3. #3
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    Smile Thanks

    thanks for the formula I have one from my text book but I like yours better.
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  4. #4
    Forum Admin topsquark's Avatar
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    Quote Originally Posted by kwtolley
    thanks for the formula I have one from my text book but I like yours better.
    What is the formula from your textbook?

    -Dan
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  5. #5
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    Post formula or sinking fund

    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
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  6. #6
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    Hello, kwtolley!

    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
    This is NOT the formula for the problem you gave.

    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 . . . ]
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