Results 1 to 5 of 5

Math Help - Compounded Annually

  1. #1
    MHF Contributor
    Joined
    Jul 2008
    From
    NYC
    Posts
    1,489

    Compounded Annually

    Kathy deposits $25 into an investment account with an annual rate of 5%, compounded annually. The amount in her account canbe determined by the formula
    A = P(1 + R)^(t), where P is the amountdeposited, R is the annual interest rate, and t is the number of years themoney is invested. If she makes no other deposits or withdrawals, how much money will be in her account at the end of 15 years?

    (1) $25.75 (3) $51.97
    (2) $43.75 (4) $393.97

    Follow Math Help Forum on Facebook and Google+

  2. #2
    Member jonah's Avatar
    Joined
    Apr 2008
    Posts
    121
    Thanks
    3
    <br />
A = 25\left( {1 + \frac{{.05}}<br />
{1}} \right)^{\left( {15 \times 1} \right)}  \approx {\text{ ?}}<br />
    Follow Math Help Forum on Facebook and Google+

  3. #3
    Member courteous's Avatar
    Joined
    Aug 2008
    From
    big slice of heaven
    Posts
    206
    (3) $51.97

    A=25*(1+0.05)^{15}
    Follow Math Help Forum on Facebook and Google+

  4. #4
    MHF Contributor
    Joined
    Jul 2008
    From
    NYC
    Posts
    1,489

    Great.....

    Quote Originally Posted by jonah View Post
    <br />
A = 25\left( {1 + \frac{{.05}}<br />
{1}} \right)^{\left( {15 \times 1} \right)} \approx {\text{ ?}}<br />
    Great set up.
    Follow Math Help Forum on Facebook and Google+

  5. #5
    MHF Contributor
    Joined
    Jul 2008
    From
    NYC
    Posts
    1,489

    Great...

    Quote Originally Posted by courteous View Post
    (3) $51.97

    A=25*(1+0.05)^{15}
    Thanks for showing me how to use this formula given by Jonah.
    Follow Math Help Forum on Facebook and Google+

Similar Math Help Forum Discussions

  1. Compounded Quarterly
    Posted in the Algebra Forum
    Replies: 2
    Last Post: January 18th 2009, 06:04 PM
  2. Compounded Continuously
    Posted in the Pre-Calculus Forum
    Replies: 2
    Last Post: August 11th 2008, 09:05 PM
  3. Compounded Intrest?
    Posted in the Business Math Forum
    Replies: 5
    Last Post: May 22nd 2008, 09:02 PM
  4. Compounded continuously
    Posted in the Calculus Forum
    Replies: 1
    Last Post: May 6th 2008, 08:13 PM
  5. Compounded Annually
    Posted in the Pre-Calculus Forum
    Replies: 5
    Last Post: December 1st 2007, 04:14 PM

Search Tags


/mathhelpforum @mathhelpforum