Thread: Increasing Investment Rate question [A(1-r)^t]

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Originally Posted by SarahGr

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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Originally Posted by SarahGr

A(t) = 24 (1 + .06/370)^370

You might want to review the definitions of the variables in the compound-interest formula...?

. . . . .

. . . . .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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