+50 You started a savings account in 2004. The balance A is given by , where t = 0 represents the year 2004. What is the balance in 2008?
+3693 hey michael, is there any other information u could give me to help u with the problem? cuz i think i got ur formula. i just need to substitute the variables with actual numbers. lol
However, i do get that between 2004 and 2008, that is 4 years... sooo... t = 4
but i need more info to answer ur question :)
+3693 hey michael, is there any other information u could give me to help u with the problem? cuz i think i got ur formula. i just need to substitute the variables with actual numbers. lol
However, i do get that between 2004 and 2008, that is 4 years... sooo... t = 4
but i need more info to answer ur question :)
+118608 the money goes in at the very beginning of 2004 and this will be the value at the very beginning of 2008
It has been invested for exactly 4 full years :)
r is the rate. if the interest rate is 5% per annum then r=0.05
$$FV=A(1+r)^4$$
Hi Michael,
This is a sipmlification of the formula because you would not be getting the interested added on yearly. Often it is accrued daily but added monthly.
If it was added monthly then this would be a better formula
$$FV=A\left(1+\frac{r\;(as\; a \;decimal)}{12}\right)^{(4*12)}$$
+118608 Thanks Titanium, but I am not quite a genius LOL
In a few years you will know this stuff too :)
+2972 of course you're a genius....thx to Ninja something
ninja seems to be a better teacher than Rosala. XD
