math problem

[johnq86]

i need some help on how to solve this problem.my teacher gave me this problem but i have no idea what to do.here is the problem,A young man is the beneficiary of a trust fund established for him 21 years ago at his birth.if the original amount placed in trust was $10,000,how much will he recive if the money has earned interest at the rate of 8%per year annually?compounded quarterly?compunded monthly?

[Virtualbody1234]

22

[DarthInsinuate]

spaceulate your puncuatations in future, por favour

"per year annually" <- tautology (i over use that word don't i?)

10000 / 100 * 8

10000 / 100 * 8 / 4

10000 / 100 * 8 / 12

i'm too lazy to work out the question or read it

[tesco]

Read your textbook it will have a formula to use...
I did that stuff last year, it's so easy once you have the formula. :)

[Guillaume]

The lazy guy's response. (http://www.1728.com/compint.htm) :01:

[NikkiD]

Oh crap, finite math. I hated that freaking course.

FV = PV(1 + i/m)mt

FV - future value
PV - present value
i - rate of interest
m - number of times per year interest is compounded
t - number of years until maturity of the investment

I think that's right. :unsure:

[Rat Faced]

Oh crap, finite math. I hated that freaking course.

FV = PV(1 + i/m)mt

FV - future value
PV - present value
i - rate of interest
m - number of times per year interest is compounded
t - number of years until maturity of the investment

I think that's right. :unsure:

And to think i started off just lusting after your body... *sigh*

[NikkiD]

Oh crap, finite math. I hated that freaking course.

FV = PV(1 + i/m)mt

FV - future value
PV - present value
i - rate of interest
m - number of times per year interest is compounded
t - number of years until maturity of the investment

I think that's right. :unsure:

And to think i started off just lusting after your body... *sigh*

:blushing: You wouldn't want my body right now. It's covered in grass still, cause I'm too tired to go shower. Prolly should though, to see if I actually got more tanned or if it's all just dirt. :unsure:

[Rat Faced]

And to think i started off just lusting after your body... *sigh*

:blushing: You wouldn't want my body right now. It's covered in grass still, cause I'm too tired to go shower. Prolly should though, to see if I actually got more tanned or if it's all just dirt. :unsure:

Oh i dont know...

Maybe im *some odd word Jonno will supply*-sexual.. :unsure:

[NikkiD]

:blushing: You wouldn't want my body right now. It's covered in grass still, cause I'm too tired to go shower. Prolly should though, to see if I actually got more tanned or if it's all just dirt. :unsure:

Oh i dont know...

Maybe im *some odd word Jonno will supply*-sexual.. :unsure:

Enviro-sexual? :unsure:

[Gripper]

Pervy-sexyal

[Rat Faced]

Pervy-sexyal

Pervertion: Deviating from what is considered right and correct


That means that everyone not turned on by Nikki, at any time, is perverted :P

[Jon L. Obscene]

Oh i dont know...

Maybe im *some odd word Jonno will supply*-sexual.. :unsure:

Intelody -sexual

Jonno :cool:

[Barbarossa]

Oh crap, finite math. I hated that freaking course.

FV = PV(1 + i/m)mt

FV - future value
PV - present value
i - rate of interest
m - number of times per year interest is compounded
t - number of years until maturity of the investment

I think that's right. :unsure:

Almost... :pinch:

FV = PV(1 + i/m)^mt ... where "^" indicates an exponent, or power.

So... answers are:

1). (Annual compound interest) : 10000 * (1.08)^21 = $50338.34
2). (Quarterly compound interest) : 10000 * (1.02)^(21*4) = $52773.32
3). (Monthly compound interest) : 10000 * (1.00666)^(21*12) = $53357.25

:cool2:

[johnq86]

thnax!