Problem

[DesignatedT]

How much should you invest now at 5.5% compounded daily in order to have $40,000 17 years from now. (Assume a 365 day-year) (Round to the nearest dollar)

tia

 

[Mrspi]

How much should you invest now at 5.5% compounded daily in order to have $40,000 17 years from now. (Assume a 365 day-year) (Round to the nearest dollar)

tia

This looks like it might be a "future value" question.....

Have you looked in your course materials for a formula that might apply here?

 

[DesignatedT]

All i can find is A=P(1+(r/n))^n*t

I'm doing something wrong along the way though.

 

[DesignatedT]

I got it. Was missing a step.

Thanks.

 

[lookagain]

All i can find is A=P(1+(r/n))^n*t

I'm doing something wrong along the way though.

You typed your formula wrong. You need additional grouping symbols,
such as

A = P(1 + (r/n))^(n*t)



Otherwise, what you typed is equal to:


\(\displaystyle A \ = \ \bigg[P\bigg(1 + \dfrac{r}{n}\bigg)^n\bigg]t\)

 

[lookagain]

A = P(1 + (r/n))^(n*t) is clearer,
but this is sufficient: A = P(1 + r/n)^(n*t)

And this is even more sufficient **:

A = P(1 + r/n)^(nt)







** nt means n multiplied by t, so the
asterisk for multiplication is redundant.

 

[Deleted member 4993]

Touche' !!!!!

Excuse my French.....

 

[lookagain]

And this is even more sufficient **:

A = P(1 + r/n)^(nt)

In the context of this problem, nt means n multiplied
by t, so the asterisk for multiplication is redundant.
And in this problem, there is no ambiguity
as to whether the variables are being restricted to
one letter or two letters, especially as these variables
were typed separately from each other in the OP's
equation.



\(\displaystyle Touche' ^2\)

 

[lookagain]

Seriously, I think it's unfortunate that the formula given
to the OP is A=P(1+(r/n))^n*t

"n" is > > usually < < used to represent
the total number of periods, not the number of periods
in a year.

I dispute the use of "usually" (statistics-wise).
The use of the versions is highly inconsistent.

I am glad you typed the version that you prefer.

I see that your version is visually more simple, but the OP's
version helps me to break it down more for my own use.

The following links have a mixture of the OP's formula and
your version:

[h=3]compound interest formulas on the Internet[/h]




http://qrc.depaul.edu/StudyGuide2009/Notes/Savings Accounts/Compound Interest.htm

http://en.wikipedia.org/wiki/Compound_interest

http://math2.org/math/general/interest.htm

http://www.mathsisfun.com/money/compound-interest.html

http://www.purplemath.com/modules/expofcns4.htm

http://mathworld.wolfram.com/CompoundInterest.html

http://www.onemathematicalcat.org/Math/Algebra_II_obj/compound_interest_formula.htm

http://www.mathexpression.com/compound-interest-formula.html

http://support.microsoft.com/kb/141695

http://student.ccbcmd.edu/~ttinglin/ComInt.htm

http://www.freemathhelp.com/future-value.html

http://www.wallace.ccfaculty.org/book/10.6 Compound Interest.pdf

http://www.teacherschoice.com.au/maths_library/money/compound_interest.htm

http://www.ajdesigner.com/phpinterest/interest_regular_deposits_p.php

http://www.math.hawaii.edu/~ramsey/CompoundInterest.html

http://www.virtualnerd.com/algebra-...ions/compound-interest-formula-definition.php

http://www.algebra.com/algebra/homework/word/finance/compound-interest-solver.solver

http://www.financefreak.com/2-math-1-compound-interest-2-formula.html

http://www.cs.ucr.edu/~ehwang/interest.html

http://www.algebralab.org/Word/Word.aspx?file=Algebra_InterestII.xml

http://www.patrickschneider.com/blo...an-initial-balance-and-monthly-contributions/

http://www.u.arizona.edu/~avr/interest.phtml

http://www.math.uga.edu/~dnguyen/handoutof9272010.pdf

http://www.algebra.com/algebra/homework/logarithm/logarithm.faq.question.59748.html