Compounded Monthly

Discussion in 'Other Pre-University Math' started by nycmathguy, Oct 24, 2021.

  1. nycmathguy

    nycmathguy

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    Section 3.5
    Question 14

    20211022_175043.jpg

    For all word problems, I am interested in the set up. I will do the work on paper and only return here if needed.

    My Set Up:

    A = p(1 + i)^(t)

    500,000 = p(1 + 0.015)^(15)

    In 15 years there are 180 months. Should t be 180 months or 15?
     
    nycmathguy, Oct 24, 2021
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  2. nycmathguy

    MathLover1

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    A = p(1 + r/n)^(n*t)
    where n=12 (number of months)
    r= 3(1/2)%=3.5% -> convert to decimal: r=0.035
    t=15 years
     
    MathLover1, Oct 24, 2021
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  3. nycmathguy

    nycmathguy

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    How silly of me. I know that 3_1/2 = 7/2 = 3.5, which becomes 0.035 in terms of r here. Now that I have the correct formula and set, I'll take it from here.
     
    nycmathguy, Oct 24, 2021
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