+0  
 
0
295
5
avatar+47 

FV=3,000

i=0.04

PMT=$600

n=?

positivityqueen  Jul 2, 2017
 #1
avatar
0

OK, PQ: Try the calculator I suggested, and if you have any problems, I will help you. Go ahead!.

Guest Jul 2, 2017
 #2
avatar+47 
0

i am confused with the calculator :( it isnt commuting the problems correctly

positivityqueen  Jul 2, 2017
 #3
avatar
0

OK. Open the calculator. Enter 3,000 under FV. Enter .04 x 100=4 under ir. Enter -600(make it negative) under PMT. Enter 0(zero) under PV. Press np key to give you the answer. Tell me what you got.

Guest Jul 2, 2017
 #4
avatar
0

i got 5.00 and it was correct!!! so how about the word problems which numbers do i plug in each box

Guest Jul 2, 2017
 #5
avatar
0

Here is our formula. I will assume the payment period is annually..

FV = A(((1+i)^n)-1)/(i)

3000 = 600(((1.04)^n)-1)/(.04)

Let's isolate 'n'

Divide by 600

5 = (((1.04)^n)-1)/(.04)

Multiply by .04

0.2 = (((1.04)^n)-1)

Add over the one

1.2 = (((1.04)^n))

Take log of both sides

ln(1.2) = n*ln(1.04)

Divide by ln(1.04)

(ln(1.2)/ln(1.04)) = n

n = 4.65

Guest Jul 3, 2017

15 Online Users

New Privacy Policy

We use cookies to personalise content and advertisements and to analyse access to our website. Furthermore, our partners for online advertising receive information about your use of our website.
For more information: our cookie policy and privacy policy.