SOLUTION: In many computer applications such as spreadsheets, a power is indicated by a caret symbol (^). For example, 34 would be written as 3^4. As a part of her budget management, Kim has
Algebra ->
Percentage-and-ratio-word-problems
-> SOLUTION: In many computer applications such as spreadsheets, a power is indicated by a caret symbol (^). For example, 34 would be written as 3^4. As a part of her budget management, Kim has
Log On
Question 1009610: In many computer applications such as spreadsheets, a power is indicated by a caret symbol (^). For example, 34 would be written as 3^4. As a part of her budget management, Kim has put money into an Individual Retirement Account. She creates a spreadsheet to estimate her earnings over time. She enters the formula: 1500(1+\frac{0.06}{4})^{4*A2} , where A2 = the time in years.
How much did Kim invest and what annual rate of interest does she expect to earn over time? Answer by Boreal(15235) (Show Source):
You can put this solution on YOUR website! Interest problem
P=Po{1+0.06/4}^4A2
She invested $1500 at 6% compounded quarterly
That is equal to 6.14% APR (not compounded at all)
