QuickHelper

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About QuickHelper

Levels Tought:
Elementary,High School,College,University,PHD

Expertise:
Accounting,Applied Sciences See all
Accounting,Applied Sciences,Business & Finance,Chemistry,Engineering,Health & Medical Hide all
Teaching Since: May 2017
Last Sign in: 353 Weeks Ago, 1 Day Ago
Questions Answered: 20103
Tutorials Posted: 20155

Education

  • MBA, PHD
    Phoniex
    Jul-2007 - Jun-2012

Experience

  • Corportae Manager
    ChevronTexaco Corporation
    Feb-2009 - Nov-2016

Category > Business & Finance Posted 12 Aug 2017 My Price 12.00

answer directly

 

 

In Chapter 1 of the text we looked at calculating a monthly payment for a loan. A related formula is to calculate the amount accruing when regular payments are made into an interest bearing account - often called the Savings Plan formula.

(A is the accrued amount after t years of making regular payments, PMT, into an account at interest rate, r%, compounded ntimes each year.)

A(t) = PMT·((1 + r/N)N·t - 1)/(r/N)

= PMT*((1 + r/N)^(N*t) - 1)/(r/N)



The second version is essentially in the form used in Excel

Suppose you want to buy a car and have decided that you can save $100 a month. Using information from an internet source, determine the current interest rate on savings accounts and use the information to answer the following:

  1. How much money will you have saved in a year’s time?
  2. How much will be interest?
  3. Why wouldn’t a linear model work here?

 

extra help: Please see the attached pdf for an example of the layout of this DQ.

Don't forget to use Excel and the necessary formulas.

https://www.youtube.com/watch?v=WzofplrjidU

Hope this helps,

 

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QuickHelper
(10)
Status NEW Posted 12 Aug 2017 03:08 PM My Price 12.00

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