course mth 172 im confused... this is simple and i will knock this out quick.
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RESPONSE --> the simple interest = 20g x 3 = 60g 8% of that = 4800 60g + 4800 = 64800 =final amount i think.
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17:56:58 `questionNumber 100000 The total money flow would be $20,000 per year for 6 years, or $120,000. 8% simple interest for 3 years would be 3 * 8% = 24%, and 24% of $120,000 is $28,800, so your first estimate would be $28,800. You therefore expect to end up with something not too far from $148,800.
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RESPONSE --> but why do you figure in for 6 years when you said 3? i've done this before, this looks easy if u could go just a little more in depth, i know i would grasp it. nothing to spend a lot of time on.
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18:06:43 `questionNumber 100000 `q002. Money usually doesn't earn simple interest. Interest is almost always compounded. If the interest on $120,000 was compounded annually at 8% for 3 years, what would be the final amount?
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RESPONSE --> 20g(1.08^3) = 25194.2?
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18:14:36 `questionNumber 100000 There is a more efficient way to calculate this, but we'll see that shortly. 8% of $120,000 is $9600, so after 1 year we will have $120,000 + $9600 = $129,600. Note that this result could have been obtained by multiplying $120,000 by 1.08. We will use this strategy for the next two years. After another year we will have $129,600 * 1.08 = $139,968. If you wish you can take 8% of $129,600 and add it to $129,600; you will still get $139,968. After a third year you will have $139,968 * 1.08 = $151,165. Note that this beats the $148,800 you calculated with simple interest. This is because each year the interest is applied to a greater amount than before; previously the interest was just applied to the starting amount.
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RESPONSE --> ok. i know i was using the wrong formula, i didn't account for that inital amount being added to itself. if it's 20g a year, it would have to almost double to get to that in half of 6 years. help?
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18:15:46 `questionNumber 100000 `q003. Money can earn interest that is compounded annually, quarterly, weekly, daily, hourly, or whatever. For given interest rate the maximum interest will be obtained if the money is compounded continuously. When initial principle P0 is compounded continuously at rate r for t interest periods (e.g., at rate 8% = .08 for t years), the amount at the end of the time is P = P0 * e^(r t). If the $120,000 was compounded continuously at 8% annual interest for 3 years, what would be the amount at the end of that period?
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RESPONSE --> ok, i will stop and send this. i will wrap this up later tonight or tommorrow.