Sign In
Ask Question
Leanna Dougherty
Mathematics
17 June, 15:44
A=P (1+r) ^t what does the 1 represent
+5
Answers (
1
)
Milo Montgomery
17 June, 15:55
0
it doesn't represent anything
Step-by-step explanation:
here is an example, Consider that your grandmother is a firm believer in saving money and refuses to give gift cards or cash at holidays. Instead, she gives all of the grandchildren $500 invested in five-year CDs (Certificates of Deposit) with compound interest figured twice a year and a 2% interest rate. Set aside the delayed gratification for a moment - - The question is, how much money will the CD be worth in 5 years? That is where compound interest kicks in.
Filling in the compound interest formula of A=P (1+r/n) ^nt, your holiday gift looks like this: A = 500 (1+.022) ^25. Following the order of operations, we calculate the amount in the parenthesis first to get A = 500 (1.01) ^25. From there, we input the exponents to get A = 500 (1.10). Now in our final calculation, the final value is A = $550. At the end of 5 years, your CD will be worth $550.
Comment
Complaint
Link
Know the Answer?
Answer
Not Sure About the Answer?
Find an answer to your question 👍
“A=P (1+r) ^t what does the 1 represent ...”
in 📗 Mathematics if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Choose the values for x that are the solutions to the inequality 5 ≤ x. Select all that apply. Group of answer choices x = 2 x = 4 x = 6 x = - 5 x = 7 x = 10
Answers (1)
Students are painting the backdrop for the school play the backdrop is 15 feet wide and 10 feet high every 16 inches on the scale drawing represents 5 feet in the backdrop what is the area of the scale drawing
Answers (1)
55 (6x-w) 2+8=6x (55-w) 8+2 solve for x
Answers (1)
In a word game, you choose a tile from the bag, replace it, and then choose another. if there are 28 vowels and 12 constants, what is the probability you will choose a constant
Answers (1)
A ball is thrown from an initial height of 7 feet with an initial upward velocity of 40 ft/s. The ball's height h (in feet) after t seconds is given by the following. h=7+40t-16t^2
Answers (1)
New Questions in Mathematics
Round each decimals to the nearest whole number 6.7
Answers (1)
Sally just got back from the vacation with her family. They had been driving for 3 days travelling 8 1/2 hours every day. How many hours were they in the car altogether.
Answers (1)
14 plums cost $2.00. What is the cost, to the nearest cent, of 50 plums?
Answers (2)
List the perfect cubes between 1000 and 3000
Answers (2)
Cathy earns $13.50 per hour for the first 40 hours worked in a week and $20.25 per hour for hours over 40. If she earns $661.50 one week.
Answers (1)
Home
»
Mathematics
» A=P (1+r) ^t what does the 1 represent
Sign In
Sign Up
Forgot Password?