Question
1) What is the final amount when $3000 is invested at 3% per year simple interest for? Show all steps.
The formula is A=P(1+rt)
2) What amount must be invested at an interest rate of 5% per year compounded monthly to obtain $15000 in 6 years? Show all steps.
The formula for compounded interest is A= P(1+i)^n
The formula is A=P(1+rt)
2) What amount must be invested at an interest rate of 5% per year compounded monthly to obtain $15000 in 6 years? Show all steps.
The formula for compounded interest is A= P(1+i)^n
Answers
MathMate
A=amount
P=principal=$3000
r=0.03
t=number of years, missing from question.
Take out your calculator and calculate according to the formula:
A=P(1+rt)
Here i=5%=0.05/12 (compounded monthly
n=6 years = 6*12=72 months
P=principal (unknown)
A=final amount = $15000.
From
A=P(1+i)^n, we get
P=A/(1+i)^n
Substitute the values and find P.
P=principal=$3000
r=0.03
t=number of years, missing from question.
Take out your calculator and calculate according to the formula:
A=P(1+rt)
Here i=5%=0.05/12 (compounded monthly
n=6 years = 6*12=72 months
P=principal (unknown)
A=final amount = $15000.
From
A=P(1+i)^n, we get
P=A/(1+i)^n
Substitute the values and find P.
Mercy
I'm the one who gave u the formulas... all you did is gave them back to me.
Then again I should have been more clear. PLEASE help me find the ANSWERS for JUST these 2. Because let me also tell you that I have to do 3 sheets filled with these sorts of questions. So if I knew how to find the answers than I wouldn't need to ask on Jiskha.
Then again I should have been more clear. PLEASE help me find the ANSWERS for JUST these 2. Because let me also tell you that I have to do 3 sheets filled with these sorts of questions. So if I knew how to find the answers than I wouldn't need to ask on Jiskha.
MathMate
It sounds like you have difficulties putting numbers into the formula you gave me, so I will do the first one for you. You can attempt the second one as a confirmation.
A=P(1+rt)
Since A=amount, so
Amount=P(1+rt)
P=3000, so
Amount=3000(1+rt)
r=0.03 (3%), so
Amount=3000(1+0.03t)
t=number of years, which you did not specify in the question. So you will have to look up the original question. Perhaps you have missed out one sentence.
<i>If</i> it says 4 years, then t=4 and
Amount would be
3000(1+0.03*4)
=3000(1+0.12)
=3000(1.12)
=3360 (IF the money is deposited for 4 years)
You can use a calculator to do the above calculations if necessary.
Please attempt #2 in a similar way, i.e. substitute the given values to find the answer. Use a calculator to do the multiplications and raising to the power of 72.
A=P(1+rt)
Since A=amount, so
Amount=P(1+rt)
P=3000, so
Amount=3000(1+rt)
r=0.03 (3%), so
Amount=3000(1+0.03t)
t=number of years, which you did not specify in the question. So you will have to look up the original question. Perhaps you have missed out one sentence.
<i>If</i> it says 4 years, then t=4 and
Amount would be
3000(1+0.03*4)
=3000(1+0.12)
=3000(1.12)
=3360 (IF the money is deposited for 4 years)
You can use a calculator to do the above calculations if necessary.
Please attempt #2 in a similar way, i.e. substitute the given values to find the answer. Use a calculator to do the multiplications and raising to the power of 72.