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Math Help - Compound Interest

  1. #1
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    Compound Interest

    $2833 is deposited into an account for 15 years. Determine the accumulation if interest is 6.01% compounded
    (a) monthly - $__________,
    (b) daily - $__________,
    (c) continuously - $____________


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  2. #2
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    Re: Compound Interest

    I believe the formula for this is A=P(1+r/n)nt for a non-continuous compund rate. Pert for a continuous compound rate.
    P=Intially placed in money=$2833
    r=Interest Rate=0.0601
    n=compund rate per year
    t=years=15
    So, this would be a function of n, A(n)
    Monthly: A(12)=(2833)(1+0.0601/12)(12)(15) =~ $6962.83
    Daily: A(365)=(2833)(1+0.0601/365)(365)(15) =~ $6978.00
    Continuously: A=2833e0.0601(15) =~ $6978.52
    Thanks from spyder12
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  3. #3
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    Re: Compound Interest

    Spyder 12

    go here Compound Interest Calculator

    and calculate everything you need for free.
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  4. #4
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    Re: Compound Interest

    Of course, he won't actually learn anything from that! And, in fact, he can't be sure the answer given there is correct.

    ssgohanf8-you are correctly right about that formula. But once you gave that, it might have been better to let spyder12 try it himself first.
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  5. #5
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    Re: Compound Interest

    I'm with you on that one HallsofIvy, but thank you ssgohanf8 for the answers. I have a few more questions like this I will try on my own.
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