Math question...

Earthgirl
Earthgirl Posts: 695
edited January 2009 in All Encompassing Trip
Hi guys, haven't been here in a while, and then I come back after being in exile with a math question from a grade 11 student. Here's the formula to use:
A=P (1+i)n the n is the exponent.

A= the Finaly amount of money
P= the principle or original amount of money
i= the interest rate per compounding period
n = the number of times that the interest will be calculated

on her 21st birthday, Liz received 5,000. This is the accumulated amount of an investment made when she was born. Calculate the principal incested if the annual interest rate was 5% compounded monthly.

the answer is 1,753.51 how do we get that amount?

come on math geeks !!
Post edited by Unknown User on

Comments

  • Cinnamon Girl
    Cinnamon Girl Posts: 1,854
    wow.... :?

    no wonder I failed math. :oops:
    05-10-06, 08-05-07, 06-14-08 , 08-12-08(EV), 06-11-09(EV), 06-12-09(EV), 08-21-09, 05-10-10, 09-11-11, 09-12-11, 07-16-13, 07-19-13, 10-12-13, 10-21-13, 10-22-13,
  • Poncier
    Poncier Posts: 17,932
    Earthgirl wrote:
    incested !!
    Nice typo.
    This weekend we rock Portland
  • Earthgirl
    Earthgirl Posts: 695
    wow, isn't exactly what I said after I read the question it was more of a Holy F.. and ive been out of school for far too long to help out. If ajedigecko was around he could help... he's a mathematician.
  • Earthgirl
    Earthgirl Posts: 695
    i didn't notice that typo at all.. hahahaha
  • Wobbie
    Wobbie Posts: 31,405
    Earthgirl wrote:
    Hi guys, haven't been here in a while, and then I come back after being in exile with a math question from a grade 11 student. Here's the formula to use:
    A=P (1+i)n the n is the exponent.

    A= the Finaly amount of money
    P= the principle or original amount of money
    i= the interest rate per compounding period
    n = the number of times that the interest will be calculated

    on her 21st birthday, Liz received 5,000. This is the accumulated amount of an investment made when she was born. Calculate the principal incested if the annual interest rate was 5% compounded monthly.

    the answer is 1,753.51 how do we get that amount?

    come on math geeks !!

    Woo-hoo!!! Welcome to the new Pit!! :( :mrgreen:
    If I had known then what I know now...

    Vegas 93, Vegas 98, Vegas 00 (10 year show), Vegas 03, Vegas 06
    VIC 07
    EV LA1 08
    Seattle1 09, Seattle2 09, Salt Lake 09, LA4 09
    Columbus 10
    EV LA 11
    Vancouver 11
    Missoula 12
    Portland 13, Spokane 13
    St. Paul 14, Denver 14
    Philly I & II, 16
    Denver 22
    Missoula 24
  • Gary Carter
    Gary Carter Posts: 14,077
    imalive wrote:
    Earthgirl wrote:
    Hi guys, haven't been here in a while, and then I come back after being in exile with a math question from a grade 11 student. Here's the formula to use:
    A=P (1+i)n the n is the exponent.

    A= the Finaly amount of money
    P= the principle or original amount of money
    i= the interest rate per compounding period
    n = the number of times that the interest will be calculated

    on her 21st birthday, Liz received 5,000. This is the accumulated amount of an investment made when she was born. Calculate the principal incested if the annual interest rate was 5% compounded monthly.

    the answer is 1,753.51 how do we get that amount?

    come on math geeks !!

    Woo-hoo!!! Welcome to the new Pit!! :( :mrgreen:
    this isnt the new pit its the "pearl jam community" :roll: :cry:
    Ron: I just don't feel like going out tonight
    Sammi: Wanna just break up?

  • Wobbie
    Wobbie Posts: 31,405
    metsfan wrote:
    this isnt the new pit its the "pearl jam community" :roll: :cry:
    Sorry... my bad. :cry:



    :D
    If I had known then what I know now...

    Vegas 93, Vegas 98, Vegas 00 (10 year show), Vegas 03, Vegas 06
    VIC 07
    EV LA1 08
    Seattle1 09, Seattle2 09, Salt Lake 09, LA4 09
    Columbus 10
    EV LA 11
    Vancouver 11
    Missoula 12
    Portland 13, Spokane 13
    St. Paul 14, Denver 14
    Philly I & II, 16
    Denver 22
    Missoula 24
  • dunkman...
    dunkman... Posts: 31
    Earthgirl wrote:

    the answer is 1,753.51 how do we get that amount?


    with a calculator
    *holds up 3 thumbs*

    inbreds rule ok!!
  • Earthgirl
    Earthgirl Posts: 695
    no shit sherlock
  • IGotShit76
    IGotShit76 Posts: 768
    Alright ! I have your answer.

    So you get P = A / (1+i)n (n being the exponent)

    So the interest rate is compounded monthly which means n = 21 * 12 = 252 (21 years and 12 months per year)
    Now the interest rate is 5% per year which means i = 5% / 12 = 0.004167 per month

    There you go P = 5000 / (1+0.004167) 252 (252 being an exponent)
    So P = 1753. 51

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