Homework Help: math 20 please check

Posted by Sandi on Saturday, October 2, 2010 at 5:13pm.

Jacob is 25 yrs old and hopes to retire by 55. He invests $22,000 in an RRSP that earns a rate of 9.7% per annum, compounded quarterly. What will his investment be at age 55?
A=P(1+i)^n
2200(1+.097/4)^120
=$390067
to get the 120 I did 55-25=30 then * by 4 cause its compounded quarterly. But answer seems so high I'm questioning myself.

math 20 please check - Reiny, Saturday, October 2, 2010 at 5:42pm
You are correct!
I got $390 067.17, the same as your answer.

You are looking at the power of compound interest.

Answer this Question

Related Questions

maths - An investor invests £20 000 over three years in a scheme which ...
math - i never can do word problems....please help... i got 7 of them.....these ...
9th grade math word problems - i never can do word problems....please help... i ...
Math Grade 5 - Mr. Jacob is 55 years old and Tony is 7 years old. In how many ...
Finance - A company requires the amount of $1,000,000 in 25 years to retire a ...
Pre-Algebra - Three individuals form a partnership and agree to divide the ...
Math - Please help me with this math problem. A woman is given a loan of $20,000...
Future Value/Present Value Problems - A) Serene Williams Corporation having ...
math - mr jacob is 55 years old and tony is 7 years old. in how many years will ...
math - Jacob Fonda deposited $25,000 in a savings account at 10% interest ...

For Further Reading

First Name:
School Subject:
Answer: