Math Is Fun Forum
You are not logged in.
- Topics: Active | Unanswered
Pages: 1
#1 2013-05-21 03:29:57
- mom
- Member
- Registered: 2012-04-25
- Posts: 94
amount to deposit
How much money would have to be deposited now at 4.5% interest compounded monthly to accumulate to $6500 in 4 years?
Could someone please show me how to work this one? Which formula is it that I use?
Offline
#2 2013-05-21 07:15:55
- bobbym
- bumpkin
- From: Bumpkinland
- Registered: 2009-04-12
- Posts: 109,606
Re: amount to deposit
Hi mom;
I am investing $5431.09
In mathematics, you don't understand things. You just get used to them.
If it ain't broke, fix it until it is.
Always satisfy the Prime Directive of getting the right answer above all else.
Offline
#3 2013-05-22 02:59:12
- mom
- Member
- Registered: 2012-04-25
- Posts: 94
Re: amount to deposit
thank you
Offline
#4 2013-05-22 04:19:12
- zetafunc.
- Guest
Re: amount to deposit
Hi mom;
I am investing $5431.09
How are you getting that? I am getting nowhere near that answer...
#5 2013-05-22 05:30:39
- bobbym
- bumpkin
- From: Bumpkinland
- Registered: 2009-04-12
- Posts: 109,606
Re: amount to deposit
Hi;
What are you getting?
In mathematics, you don't understand things. You just get used to them.
If it ain't broke, fix it until it is.
Always satisfy the Prime Directive of getting the right answer above all else.
Offline
#6 2013-05-22 05:57:00
- zetafunc.
- Guest
Re: amount to deposit
Approximately $785.84...
785.84*(1.045[sup]48[/sup]) ≈ 6500
#7 2013-05-22 06:00:28
- bobbym
- bumpkin
- From: Bumpkinland
- Registered: 2009-04-12
- Posts: 109,606
Re: amount to deposit
Hi zetafunc;
Isn't that a lot of money earned off of 4.5% interest?
I think the problem is that you have her earning 4.5% per month. She is only earning 1 / 12 of that per month.
In mathematics, you don't understand things. You just get used to them.
If it ain't broke, fix it until it is.
Always satisfy the Prime Directive of getting the right answer above all else.
Offline
#8 2013-05-22 06:05:34
- zetafunc.
- Guest
Re: amount to deposit
But isn't it being compounded monthly?
It is a lot of interest -- I would have expected that to be per year.
#9 2013-05-22 06:08:25
- bobbym
- bumpkin
- From: Bumpkinland
- Registered: 2009-04-12
- Posts: 109,606
Re: amount to deposit
Hi;
How much money would have to be deposited now at 4.5% interest compounded monthly to accumulate to $6500 in 4 years?
That means a little bit better than 4.5 % because you get a bit per month.
In mathematics, you don't understand things. You just get used to them.
If it ain't broke, fix it until it is.
Always satisfy the Prime Directive of getting the right answer above all else.
Offline
#10 2013-05-22 06:15:34
- zetafunc.
- Guest
Re: amount to deposit
So it is actually 4.59% monthly?
#11 2013-05-22 06:24:31
- bobbym
- bumpkin
- From: Bumpkinland
- Registered: 2009-04-12
- Posts: 109,606
Re: amount to deposit
It is 4.5% / 12 monthly. That gives you a higher effective interest than compounding yearly.
In mathematics, you don't understand things. You just get used to them.
If it ain't broke, fix it until it is.
Always satisfy the Prime Directive of getting the right answer above all else.
Offline
Pages: 1