Wednesday

July 23, 2014

July 23, 2014

Posted by **Scott** on Wednesday, December 19, 2012 at 3:46pm.

- Math -
**Damon**, Wednesday, December 19, 2012 at 3:49pmScott, you are not giving us anything like the information required for this problem or the other one.

Compound interest?

How often? (monthly, continuous, quarterly)

How long?

In your earlier problem you gave us no idea what the interest rate was or how often it was compounded. Are you making these problems up yourself?

- Math -
**Scott**, Wednesday, December 19, 2012 at 4:10pmIt is not a school question. It is a real life question.

So let's assume the interest averaged 4 % compounded daily over the 27 years.

- Math -
**Damon**, Wednesday, December 19, 2012 at 10:23pmfuture value = present value e^yr

where y = 27 years

r = .04 yearly interest rate

e^1.08 = 2.945

so

2700 * 2.945 = 7950.63

- Math -
**Damon**, Wednesday, December 19, 2012 at 10:25pmcalculator here:

http://www.moneychimp.com/articles/finworks/continuous_compounding.htm

**Related Questions**

Math - If I left $2700 in a variable rate interest account in 1986, how much is ...

Economics - $2700 left in a variable rate interest bearing account in 1986 is ...

Math - If Brad invests $2700 in an account paying 11% compounded quarterly. How ...

Math - Today you deposited $5000 into a savings account paying 12% interest. How...

Personal Finance Concepts - After a protracted legal case, Joe won a settlement ...

personal finance - A.After a protracted legal case, Joe won a settlement that ...

personal finance - After a protracted legal case, Joe won a settlement that will...

Finance - You can deposit 10,000 into an account paying 9% annual interest ...

Finance - . (TCO 3) Mark deposited $1,000 today, in an account that pays eight ...

Finance - Please answer these questions: 1. After a protracted legal case, Joe ...