SOLUTION: Calculate the amount in m years if a principal P is invested at a nominal annual interest rate of r compounded as given. Round to the nearest cent.
P=$480, m=4, r=7% compounded
Algebra.Com
Question 46797: Calculate the amount in m years if a principal P is invested at a nominal annual interest rate of r compounded as given. Round to the nearest cent.
P=$480, m=4, r=7% compounded quarterly.
I have tried several times using info I got from this website to work this problem, but come up with some really far-fetched answers. Maybe I'm missing something along the way. Can anyone give me some specifics on how to set this up? Thanks!
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
P=$480, m=4 yrs. , r=7% compounded quarterly.
A=P(1+r/4)^(4m)
A=480(1+0.07/4)^(4*4)
A=480(1.0175)^16
A=480*1.31992935
A=$633.57
Cheers,
Stan H.
RELATED QUESTIONS
The amount of money in an account with continuously compounded interest is given by the... (answered by robertb)
The amount of money in an account with continuously compounded interest is given by the... (answered by ikleyn,MathTherapy)
A book pays annual interest rate of 3% compounded quantity.if the initial deposit
(Or... (answered by Cromlix)
What is the accumulated amount A if the principal P = $11,000 is invested at the interest (answered by ewatrrr)
Find the accumulated amount A if the principal P = $2,000 is invested at the interest... (answered by lynnlo)
Find the accumulated amount A if the principal P = $11,000 is invested at the interest... (answered by rfer)
A principal of $12,000 is invested in an account paying an annual interest rate of 6%.... (answered by rfer)
The formula A= P e^rt describes the accumulation value A, of a sum of money P, the... (answered by josmiceli)
The formula A= P e^rt describes the accumulation value A, of a sum of money P, the... (answered by josgarithmetic)