Interest Rate Algebra  TOPIC_SOLVED

Simplificatation, evaluation, linear equations, linear graphs, linear inequalities, basic word problems, etc.

Interest Rate Algebra

Postby The Stranger on Sat Nov 06, 2010 5:17 pm

Rick inherits $100,000 and decides to invest it in an account that pays an interest rate of 5% compounded semi-annually for 5 years.

1. Subsititute values into the formula that correspons to the information provided above.

2. To the nearest cent, determine the value of the bond after 5 years.

3. Determine the amount of interest earned by the investment.

I'm so lost, can someone help?
User avatar
The Stranger
 
Posts: 6
Joined: Wed Oct 06, 2010 4:52 pm

Sponsor

Sponsor
 

Re: Interest Rate Algebra

Postby Martingale on Sat Nov 06, 2010 7:10 pm

The Stranger wrote:Rick inherits $100,000 and decides to invest it in an account that pays an interest rate of 5% compounded semi-annually for 5 years.

1. Subsititute values into the formula that correspons to the information provided above.

2. To the nearest cent, determine the value of the bond after 5 years.

3. Determine the amount of interest earned by the investment.

I'm so lost, can someone help?


Do you at least have the formula you are supposed to use?
User avatar
Martingale
 
Posts: 363
Joined: Mon Mar 30, 2009 1:30 pm
Location: USA

Re: Interest Rate Algebra

Postby The Stranger on Sat Nov 06, 2010 7:14 pm

Martingale wrote:
The Stranger wrote:Rick inherits $100,000 and decides to invest it in an account that pays an interest rate of 5% compounded semi-annually for 5 years.

1. Subsititute values into the formula that correspons to the information provided above.

2. To the nearest cent, determine the value of the bond after 5 years.

3. Determine the amount of interest earned by the investment.

I'm so lost, can someone help?


Do you at least have the formula you are supposed to use?


I just figured out the formula, I'm not sure if it's right:

A=P(1+i)^n

Where P=principal, i=interest, and n is the number of years.

A=100,000(1+5%)^5
User avatar
The Stranger
 
Posts: 6
Joined: Wed Oct 06, 2010 4:52 pm

Re: Interest Rate Algebra  TOPIC_SOLVED

Postby Martingale on Sat Nov 06, 2010 7:18 pm

The Stranger wrote:
Martingale wrote:
The Stranger wrote:Rick inherits $100,000 and decides to invest it in an account that pays an interest rate of 5% compounded semi-annually for 5 years.

1. Subsititute values into the formula that correspons to the information provided above.

2. To the nearest cent, determine the value of the bond after 5 years.

3. Determine the amount of interest earned by the investment.

I'm so lost, can someone help?


Do you at least have the formula you are supposed to use?


I just figured out the formula, I'm not sure if it's right:

A=P(1+i)^n

Where P=principal, i=interest, and n is the number of years.

A=100,000(1+5%)^5


User avatar
Martingale
 
Posts: 363
Joined: Mon Mar 30, 2009 1:30 pm
Location: USA


Return to Beginning Algebra

cron