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Question 550559: what is the correct decimal conversion?
Catarina has a savings account that pays 3.2% interest compounded annually. She intends to withdraw $1000 each year for the next 7 years, beginning a year from now.
3.2/365=0.00876
pv= A/1+i)^n
1000/(1.000876)^1
=999.12
I'm uncertain when converting to decimal. I don't understand the number of 0's needed.
Taly and Marc open a Registered Home Ownership Savings Plan that pays 6% interest compounded semi-annually. For years, they invest $500 every 6 months in the plan. Determine the amount of interest they earn.
2/6.0%=0.3333
decimal form 1.03
A= P(1+i)^n
A=500(1.003)^1
501.5
500(1.003)^2
503
I'm experiencing the same problem with this question. There is a level of uncertainty when it comes to placing decimals.
Answer by Alan3354(69443)   (Show Source):
You can put this solution on YOUR website! what is the correct decimal conversion?
Catarina has a savings account that pays 3.2% interest compounded annually. She intends to withdraw $1000 each year for the next 7 years, beginning a year from now.
3.2/365=0.00876 ********** You're finding the daily interest, when it's compounded annually. Don't divide by 365.
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pv= A/1+i)^n
1000/(1.000876)^1
=999.12
I'm uncertain when converting to decimal. I don't understand the number of 0's needed.
----------
You didn't say what you want to solve for.
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Taly and Marc open a Registered Home Ownership Savings Plan that pays 6% interest compounded semi-annually. For years, they invest $500 every 6 months in the plan. Determine the amount of interest they earn.
2/6.0%=0.3333 ********* You divided 2 by 6, should be 6/2 = 3
6% per year = 3% semi-annually.
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decimal form 1.03 *********** 1.03 is correct, tho. 3% = 0.03
A= P(1+i)^n
A=500(1.003)^1 ****** Then you made it 1.003. should be 1.03
501.5
500(1.003)^2
503
I'm experiencing the same problem with this question. There is a level of uncertainty when it comes to placing decimals.
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"For years, they invest $500 every 6 months..."
********* You have to specify how many years. And, you have to account for the $500 deposits, too.
500*(1.03)^n gives the Future Value, but doesn't include the $500 deposits.
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