1. Not finding help here? Sign up for a free 30min tutor trial with Chegg Tutors
    Dismiss Notice
Dismiss Notice
Join Physics Forums Today!
The friendliest, high quality science and math community on the planet! Everyone who loves science is here!

Need an formula/equation for this scenario

  1. Dec 18, 2008 #1
    1. The problem statement, all variables and given/known data
    I invest 600 every year for 8% compound interest
    for etc. first yr 600* 1.08= 648

    2nd yr
    600+648= 1248
    1248*1.08= 1347.84

    3rd yr
    1347.84+600=1947.84
    1947*1.08=2102.74

    and so on

    2. Relevant equations

    compounded interest formula is

    P is the principal (the money you start with, your first deposit)

    r is the annual rate of interest as a decimal (5% means r = 0.05)

    n is the number of years you leave it on deposit

    A is how much money you've accumulated after n years, including interest.

    If the interest is compounded once a year:

    A = P(1 + r)power of n

    3. The attempt at a solution

    i attempted A= nP(1+r)power of n

    but there's some difference in the answers im getting

    please help correct my formula
     
  2. jcsd
  3. Dec 18, 2008 #2
    nvm i got it

    P = sum deposited at the end of each year (beginning one year from when the annuity "starts")

    r = the interest rate, as a decimal (5%, for example, is r = 0.05)

    n = number of years the annuity has run

    N = total amount accumulated at the end of n years.

    N = (P/r)( (1 + r)n - 1)
     
Know someone interested in this topic? Share this thread via Reddit, Google+, Twitter, or Facebook

Have something to add?



Similar Discussions: Need an formula/equation for this scenario
  1. Just need some formulas (Replies: 10)

  2. I need formulaes (Replies: 2)

  3. Sin equation formula (Replies: 1)

Loading...