- #1
- 44
- 0
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 :)
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
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
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
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