Yahoo Answers is shutting down on May 4th, 2021 (Eastern Time) and beginning April 20th, 2021 (Eastern Time) the Yahoo Answers website will be in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.
The formula for calculating the amount of money returned for deposit money into a bank account or CD?
Suppose you deposit $20,000 for 3 years at a rate of 8%. If a bank compounds continuous, then the formula becomes simpler, that is
where e is a constant and equals approximately 2.7183. Now suppose, instead of knowing t, we know that the bank returned to us $25,000 with the bank compounding continuously. Using logarithms, find how long we left the money in the bank (find t).
- 1 decade agoFavorite Answer
ok it sounds like you know how to do this, but just dont want to number crunch... anyway i'll start from the top.
let's set up a formula that relates current value, future value, interest rate and time.
25,000 = 20,000(1.08)^t
first thing to do is get rid of that 20,000... so it becomes
1.25 = 1.08^t
take the log of each side and bring the t down.
log1.25 = t log1.08
so t = log1.25/log1.08
t = 2.899435195 years
- ?Lv 44 years ago
The formulation for the uniform sequence (A) back given a modern-day properly worth (P) is: A = P[(i(one million+i)^n]/[(one million+i)^n-one million] the place i is the useful interest cost, i =[one million+r/m]^m the place r is the nominal (annual) interest cost and m is the form of compounding sessions. n is the form of years. Sorry for changing extremely some the notation, yet it extremely is the way I found out it.
- 1 decade ago
formula for calculating the amount receivable when the amount is compounded annually....
amount= p(1 + r/100)^t
where p= principal
r=rate of interest
t=period for which the principal is left in a/c
taking values of different variables
taking log on both sides,
- Marcella SLv 51 decade ago
25,000 = 20,000e^(.08t)
25,000/20,000 = e^(.08t)
5/4 = e^(.08t)
You can take it from here. I gotta go.