Answered: Please explain how to calculate the…

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

See similar textbooks

Related questions

Question

Please explain how to calculate the amount and interest using the future value chart with $15,000 at 8% quarterly for 2 years. Thank so much! You're awesome!

Expert Solution

Step 1

The purpose of the future value tables or FV tables is to carry out future value calculations without the use of a financial calculator.

The future value formula is:

$F V = P V \times {(1 + i)}^{n}$

Here $i$ denotes the interest percent and $n$ denotes the period and $P V$ is the present value.

According to the given question, the interest $i = 8 %$ =0.08.

The present value, $P V = 15, 000$ .

Note that the interest is compounded quarterly for 2 years. An year has four quarters. Hence, 2 years has eight quarters.

So, we should take the period as 8, i.e. $n = 8$ .

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

$Transcendental Expression$

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, advanced-math and related others by exploring similar questions and additional content below.

Similar questions