How do you solve the formula a=[(1+0.0279/12)^12(4) -1] / 0.0279/12 (1+ 0.0279/12)^12(4). Showing all the steps and where you rounded.
To solve the formula a=[(1+0.0279/12)^12(4) -1] / 0.0279/12 (1+ 0.0279/12)^12(4), we will follow the order of operations and simplify step by step:
1. Calculate the expression within the brackets first: (1+0.0279/12)
= (1+0.002325)
= 1.002325
2. Calculate (1+0.0279/12)^12:
= 1.002325^12
= 1.028573318
3. Calculate (1+0.0279/12)^12(4):
= 1.028573318 * 4
= 4.114293274
4. Substitute the values back into the original formula:
a = [(4.114293274 - 1) / 0.0279/12) * 4.114293274
a = [3.114293274 / 0.002325) * 4.114293274
a = 1337.50125
So, the final value of 'a' after solving the formula is approximately 1337.50125.