SOLUTION: growth and decay a=p(1+r/n)nt if $100,000 is invested in an account that pays 5.2% compounded quarterly, how much money will be in the account after 12 years? my teachers use

Question 87282: growth and decay a=p(1+r/n)nt if $100,000 is invested in an account that pays 5.2% compounded quarterly, how much money will be in the account after 12 years? my teachers use this equation, and or a calculator, i tried to write out the problem and compound it quarterly... i came up with more money then they did. In our answer book, many of the answers to similar questions say about ????? If i were the investor, about is not an answer. I would want an exact amount, wuldn't you? creative accounting is not algebra!
Answer by ankor@dixie-net.com(22740) (Show Source): You can put this solution on YOUR website!
growth and decay a=p(1+r/n)nt if $100,000 is invested in an account that pays 5.2% compounded quarterly, how much money will be in the account after 12 years? my teachers use this equation, and or a calculator, i tried to write out the problem and compound it quarterly... i came up with more money then they did. In our answer book, many of the answers to similar questions say about ????? If i were the investor, about is not an answer. I would want an exact amount, wuldn't you? creative accounting is not algebra!
:
a = p(1+(r/n))^nt
:
In your problem; p=100000, r=.052, n=4(quarterly), t=12
:
a = 100000(1+(.052/4))^(4*12)
:
a = 100000(1.013)^36
:
Enter 100000 * 1.013^36 on a good calc, you will get:
$159,198.89, that's to the nearest cent
:
You can also use logs to find it:
log(1.013) = .005609 * 36 = .20194
Find the antilog of .20194 = 1.5919889 * 100000 = $159,198.88 (1 cent dif)
:
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