Question 710864: You deposit $1400 in an account that pays 6% interest compounded yearly how do you set up an equation for it Answer by tutor_paul(519) (Show Source):
You can put this solution on YOUR website! You need to know the "Time Value of Money" equation to do this.
Where:
FV=Future Value
PV=Present Value
i=interest rate
n=number of compounding periods
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For your problem, you did not indicate at what time you wanted to know how much money you have, so I can't solve it. But to set it up, the equation is:
With this equation, you can figure out the future value for n compounding periods.
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Good Luck,
tutor_paul@yahoo.com
