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

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.

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?

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.

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....