Saturday

September 20, 2014

September 20, 2014

Posted by **Daniel** on Sunday, April 7, 2013 at 12:43am.

So i thought it would be :

A = 7500(1+0.09)^(20)

A = 42033...

However I have been told it could be:

Value = 7500 + 7500*0.09*20 = $21,000

Which is the correct method?

- math -
**Reiny**, Sunday, April 7, 2013 at 1:14amthe first method uses compound interest which would be the normal way of doing it.

The second uses simple interest, a method used for very short periods of time and certainly does not fit into a 25 year period

I would be my money on

A = 7500(1+0.09)^(20)

- math -
**Daniel**, Sunday, April 7, 2013 at 11:17amThank you very much.

**Answer this Question**

**Related Questions**

math - 1) An antique dresser was purchased for $7500 in 2005. The dresser ...

math - Cassandra bought a dresser for $500. If the value of the dresser ...

algebra - Cassandra bought an antique dresser for $500. If the value of her ...

Math - A dresser needs to be placed in an alcove which is 42 1/8 in high. The ...

math - . The top of a dresser is 33/ 4 feet from an 8-foot ceiling. Which of the...

Math help plz - Dresser is 3 3/4 feet from 8 foot ceiling .what height of ...

math - The carpenter wants to make a dresser based on the dollhouse furniture. ...

Pre-Algebra - problem: Dena borrowed $7500 to buy a used car. The credit union ...

math - ms sue for my question before i mean how much is the dresser in 3 years?

Math - Real Estate an office building purchased for $1, 200,000 is appreciating ...