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Math Help - Increasing Investment Rate question [A(1-r)^t]

  1. #1
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    Question Increasing Investment Rate question [A(1-r)^t]

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    Last edited by SarahGr; May 14th 2009 at 07:31 PM.
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  2. #2
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    Quote Originally Posted by SarahGr View Post
    I know that you have to use the A(t) = Ao (1 + r/n)^nt formula but I keep trying and it just isn't working out right
    Please reply showing your steps, so that we can try to find any errors.

    Thank you!
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    Last edited by SarahGr; May 14th 2009 at 07:31 PM.
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    Quote Originally Posted by SarahGr View Post
    A(t) = 24 (1 + .06/370)^370
    You might want to review the definitions of the variables in the compound-interest formula...?

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

    . . . . .A: ending value or balance
    . . . . .P: beginning value or balance
    . . . . .r: interest or growth rate, expressed as a decimal
    . . . . .n: number of compoundings per interest term (yearly, in this case)
    . . . . .t: number of terms (years, in this case)

    How are you arriving at 370 compoundings per year...?
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    Last edited by SarahGr; May 14th 2009 at 07:31 PM.
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