the fernrod motorcycle company invested 250,000 at 4.5% compounded monthly to be used for the expansion of their manufacturing facilities. how much money will be aviable for the project 3.5 years?
250000(1+.045/12)^(12*3.5) = 292,559
Oh, motorcycles and money, two of my favorite topics! Let me put on my math clown nose and calculate that for you.
Using the magic of compound interest, we can calculate the future value of the investment. The formula we'll use is:
FV = P * (1 + r/n)^(n*t)
Where:
FV = Future Value
P = Principal amount (initial investment)
r = Annual interest rate (decimal form)
n = Number of times interest is compounded per year
t = Number of years
Plugging in the numbers you provided, we get:
FV = 250,000 * (1 + 0.045/12)^(12*3.5)
After some clown magic, we find that the money available for the project after 3.5 years will be approximately $291,319.71.
That's a nice chunk of change to rev up the manufacturing facilities at Fernrod Motorcycle Company!
To calculate the amount of money available for the project after 3.5 years, we can use the formula for compound interest:
A = P (1 + r/n)^(nt)
Where:
A = the future value of the investment
P = the initial investment amount
r = the annual interest rate (as a decimal)
n = the number of times interest is compounded per year
t = the number of years
In this case:
P = $250,000
r = 4.5% = 0.045 (as a decimal)
n = 12 (since interest is compounded monthly)
t = 3.5 years
Plugging in these values:
A = 250,000 (1 + 0.045/12)^(12*3.5)
A = 250,000 (1 + 0.00375)^(42)
A ≈ $282,063.31
Therefore, the amount of money available for the project after 3.5 years will be approximately $282,063.31.
To find out how much money will be available for the project after 3.5 years, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the amount of money after the specified time
P = the principal amount (the initial investment)
r = annual interest rate (as a decimal)
n = number of times interest is compounded per year
t = number of years
In this case, the principal amount (P) is $250,000, the annual interest rate (r) is 4.5%, which is equivalent to 0.045 as a decimal, and the interest is compounded monthly, so n = 12. The time period (t) is 3.5 years.
Plugging in the values into the formula:
A = 250,000(1 + 0.045/12)^(12*3.5)
Now, let's calculate the value:
A = 250,000(1 + (0.045/12))^(12*3.5)
A = 250,000(1 + 0.00375)^(42)
A = 250,000(1.00375)^(42)
Calculating the exponential part:
A = 250,000(1.00375)^42
A ≈ 250,000 * 1.1797665792
Finally, calculate the amount of money available for the project:
A ≈ $294,941.64
Therefore, the amount of money available for the project after 3.5 years will be approximately $294,941.64.