math teachers..accountants..... smart people...help with homework pls

Discussion in 'Random Ramblings' started by Dar, Jan 6, 2012.

  1. Dar

    Dar Overrun With Chickens

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    My son is cramming at the last minute he has math that is due on Monday.... I suck at math (well this stuff anyway)

    heres the question.... well there are a couple..

    1) Adrian won $10,000 in the lottery. He has decided to spend some of the money and save the rest. Adrian wants the money he saves to grow to his original winnings in 7 years. He can invest the money at 4% per year, compounded monthly. How much money must Adrian invest?

    2)Calculate the present value of each investment.

    a) $46000 due in 7 years, if the interest is calculated at 5% per year

    b) $3600 due in 12 years at 1% per year, compounded semi monthly


    I dont remember how to do this stuff... I was able to help with he other stuff but I cant find formulas for these in his text

    any help would be great. .. I am a visual learner.... so you cant just explain it in writing.. i need to see the problem solved with steps... thanks
     
  2. DinosRBirds

    DinosRBirds Hunted by Moonlight

    Feb 1, 2011
    Lake Huron,MI
    Quote:[​IMG] what grade is he in???????
     
  3. Dar

    Dar Overrun With Chickens

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    Quote:[​IMG] what grade is he in???????

    11.. I dont feel silly now...
     
    Last edited: Jan 6, 2012
  4. Matthew3590

    Matthew3590 Chillin' With My Peeps

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    Sounds like algebra 2. I might be some help if I can find my book. We did some of the formulas for compounded continuously and other methods.

    I took algebra 2 freshman year. SO it is still iffy on me.
     
    Last edited: Jan 6, 2012
  5. hdowden

    hdowden Overrun With Chickens

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    louisiana
    its algebra 2 and i dont remeber how to do these type of problems
     
  6. BlackBrookPoultry

    BlackBrookPoultry Chillin' With My Peeps

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    I know how to compute that in Excel, but not on paper!
     
    Last edited: Jan 6, 2012
  7. animalsRawesome

    animalsRawesome Chillin' With My Peeps

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    Not 100 percent sure, but here goes:

    A= P(1+r/n)^nt
    10,000= P (1+.04/12)^12*7
    10,000= P(1.00333333)^84
    10,000= 1.323P
    P=7558.6

    Thats what I got. Do you have the answer to know if I did it correctly?
     
  8. HeatherLynn

    HeatherLynn Chillin' With My Peeps

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    Kentucky, Cecilia
    I did something similar. a=p(1+r)n
    10,000=(10,000-x)(1+.04)7th power
    10,000=(10,000-x)(1.316)
    10,000=13160-1.316x
    1.316x=3160
    x=2401.22
    x being the amount he spent and did not invest

    10,000-2401.22= 7598.78

    I popped this into a compounding interest calculator and came up with investing 7598.78 for 7 years at 4% interest compounded monthly is 10049.49. Close but not perfect. I have tried six ways to Sunday to get exactly 10000 back and I cannot make it happen.

    http://www.webmath.com/compinterest.html This was a pretty handy website. gives a worked out explanation of what the calculator did to figure that end figure up.


    animals your amount comes to $9996.35. You got much closer than I could. I gotta be doing something off just not sure what yet.
     
    Last edited: Jan 6, 2012
  9. Dar

    Dar Overrun With Chickens

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    book says answer is $7567.38

    and this is what confuses the jeebers out of me.. animal comes closest to the $10,000 but Heather comes closest to the book answer....
     
    Last edited: Jan 7, 2012

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