1) What is the final amount when $3000 is invested at 3% per year simple interest for? Show all steps.
The formula is A=P(1+rt)
2) What amount must be invested at an interest rate of 5% per year compounded monthly to obtain $15000 in 6 years? Show all steps.
The formula for compounded interest is A= P(1+i)^n
It sounds like you have difficulties putting numbers into the formula you gave me, so I will do the first one for you. You can attempt the second one as a confirmation.
A=P(1+rt)
Since A=amount, so
Amount=P(1+rt)
P=3000, so
Amount=3000(1+rt)
r=0.03 (3%), so
Amount=3000(1+0.03t)
t=number of years, which you did not specify in the question. So you will have to look up the original question. Perhaps you have missed out one sentence.
If it says 4 years, then t=4 and
Amount would be
3000(1+0.03*4)
=3000(1+0.12)
=3000(1.12)
=3360 (IF the money is deposited for 4 years)
You can use a calculator to do the above calculations if necessary.
Please attempt #2 in a similar way, i.e. substitute the given values to find the answer. Use a calculator to do the multiplications and raising to the power of 72.
A=amount
P=principal=$3000
r=0.03
t=number of years, missing from question.
Take out your calculator and calculate according to the formula:
A=P(1+rt)
Here i=5%=0.05/12 (compounded monthly
n=6 years = 6*12=72 months
P=principal (unknown)
A=final amount = $15000.
From
A=P(1+i)^n, we get
P=A/(1+i)^n
Substitute the values and find P.
I'm the one who gave u the formulas... all you did is gave them back to me.
Then again I should have been more clear. PLEASE help me find the ANSWERS for JUST these 2. Because let me also tell you that I have to do 3 sheets filled with these sorts of questions. So if I knew how to find the answers than I wouldn't need to ask on Jiskha.
1) To calculate the final amount when $3000 is invested at 3% per year simple interest, you can use the formula A = P(1 + rt), where A is the final amount, P is the principal amount (initial investment), r is the interest rate, and t is the time in years.
In this case, P = $3000, r = 0.03 (3% expressed as a decimal), and t is not specified. Let's assume t = 1 year.
Substituting the values into the formula, we have:
A = $3000(1 + 0.03 * 1)
= $3000(1 + 0.03)
= $3000(1.03)
= $3090
Therefore, the final amount after 1 year would be $3090.
Note: If you want to calculate the final amount for a different time period, simply substitute the appropriate value for t into the formula.
2) To calculate the amount that must be invested at an interest rate of 5% per year compounded monthly to obtain $15000 in 6 years, you can use the formula A = P(1 + i)^n, where A is the desired amount, P is the principal amount, i is the interest rate (expressed as a decimal), and n is the number of compounding periods.
In this case, A = $15000, i = 0.05 (5% expressed as a decimal), and n = 6 years * 12 months/year = 72 months.
Substituting the values into the formula, we have:
$15000 = P(1 + 0.05/12)^72
To solve for P, we need to isolate it on one side of the equation. Dividing both sides by (1 + 0.05/12)^72, we have:
P = $15000 / (1 + 0.05/12)^72
Now, you can use a calculator or spreadsheet to perform the calculation.
Note: When calculating compounded interest, it is important to match the time period (in this case, months) with the interest rate (per month).