Help with Compound Interest Homework Problem

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SUMMARY

The discussion focuses on calculating compound interest for a principal amount of $65,000 at an annual interest rate of 5.25% over 1.5 years. The relevant formulas provided include A = P(1 + (r/n)) ^ (nt) and A = P(1 + r)^t. The user attempted to calculate the interest using I = P[(1 + (r/n)) ^ (nt)-1], but struggled to arrive at the expected result of $5,185.36. Clarification on the compounding frequency is necessary for accurate calculations.

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i have five problems on this on my econ test tomorrow. PLEASE HELP! I've looked in my book and can't find anything! thank you :)

Homework Statement


Calculate compound interest:
principal: 65,000
rate: 5.25%
time: 1.5 years

it doesn't say how long it's going to be compounded

Homework Equations


i found this one on wikipedia http://en.wikipedia.org/wiki/Compound_interest :
A = P(1 + (r/n)) ^ (nt)
where,
P = principal amount (initial investment)
r = annual interest rate (as a decimal)
n = number of times the interest is compounded per year
t = number of years
A = amount after time t

and then i found this one...

A = P(1 + r)^t
where,
r = annual interest rate
t = number of years
P = principal amount
A = amount after time t

The Attempt at a Solution


i REALLY tried to calculate this, but i can't get the answer which is supposed to be $5185.36

please help me! i'd reallyreallyreally appreciate it :D
 
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calculation is
65000*[(1+.0525)^1.5-1]

It is written confusingly
we have
A = P(1 + (r/n)) ^ (nt)
where,
P = principal amount (initial investment)
r = annual interest rate (as a decimal)
n = number of times the interest is compounded per year
t = number of years
A = amount after time t
A = P(1 + (r/n)) ^ (nt)
I = P[(1 + (r/n)) ^ (nt)-1]
I is the interest and
A=I+P
where,
P = 65000
r = .0525
n = 1
t = 1.5
A = 65000*[(1+.0525)^1.5]
I = 65000*[(1+.0525)^1.5-1]
 

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