SOLUTION: I am having trouble with a compound interest problem;
investment of 680 at 4 percent compounded monthly for 17 years.
I tried the equation in my manual of A=P(1-r/n)^nt but I don
Algebra ->
Finance
-> SOLUTION: I am having trouble with a compound interest problem;
investment of 680 at 4 percent compounded monthly for 17 years.
I tried the equation in my manual of A=P(1-r/n)^nt but I don
Log On
Question 850203: I am having trouble with a compound interest problem;
investment of 680 at 4 percent compounded monthly for 17 years.
I tried the equation in my manual of A=P(1-r/n)^nt but I don't think I am using
my calculator correctly, could anyone help give a break down so I could possibly
see what I'm doing wrong? Found 2 solutions by Alan3354, josgarithmetic:Answer by Alan3354(69443) (Show Source):
You can put this solution on YOUR website! How you put this into the calculator depends on the calculator type. Graphing Calculator like TI-?? has parentheses available. Even if on just simple calculator, or scientific calculator, you need to know order of operations and should have no trouble managing the computation.
If your formula is as shown, it is potentially wrong about the exponent "nt" in case the t becomes converted to just a factor(although the exponent appears correctly here); and the subtraction shown is not appropriate for exponential GROWTH. This use of subtraction is the most likely problem happening in your exercise.
Compounding of interest for bank balance should be , where the r is the decimalized form of the yearly rate, and the n is the number of compounding periods in the year. The number of years is t.
(