Calculaate the following: 1-How much money will you have in three years if you d
ID: 2843012 • Letter: C
Question
Calculaate the following:
1-How much money will you have in three years if you deposit $200 now earning 1.5% compounded daily?
2-How much money will you have in three years if you deposit $200 now earning 1.5% compounded every second?
Use the forumla A=P(1+(r/n)^nt where A is the future value, P is the present value, r is the annual rate, n is the number of compunds per year, and t is the number of years.
Tell which calculator you are using. Do your answers make sense? Explain.
MUST SHOW WORK!
Explanation / Answer
I split it up in parts to make it easier on my TI-83 calculator.
First (1 + 0.15/365)= 1.046027018....
Then (Ans)^(365*3)
Finally (Ans)200.
If you do it all at once it rounds the final answer for some reason to 200. The actual answer is $209.21.