Interest rate formula

Can you please tell me the actual formula?
q5.JPGscreenshot.jpg
mustish1Asked:
Who is Participating?
I wear a lot of hats...

"The solutions and answers provided on Experts Exchange have been extremely helpful to me over the last few years. I wear a lot of hats - Developer, Database Administrator, Help Desk, etc., so I know a lot of things but not a lot about one thing. Experts Exchange gives me answers from people who do know a lot about one thing, in a easy to use platform." -Todd S.

AnthonyHamonCommented:
0
mustish1Author Commented:
A = P(1+r/n)^nt
P=3800
r=5.4
t=8

what is n?
0
AnthonyHamonCommented:
n is the number of times that interest is compounded per year.  So in your case this is 12 because the question states that interest is compounded monthly.
0
Cloud Class® Course: Ruby Fundamentals

This course will introduce you to Ruby, as well as teach you about classes, methods, variables, data structures, loops, enumerable methods, and finishing touches.

KaffiendCommented:
You can google for the formula, you know.

The second solution is VERY wrong, btw.
0
mustish1Author Commented:
It looks like different the way it solve above.

A = P(1+r/n)^nt
P=3800
r=5.4
t=8
n=12

A=3800(1+5.4/12)12*8
0
AnthonyHamonCommented:
t is not 8 - that would be 8 years.  For 8 months it is 8/12 or 0.666667
r is not 5.4 - that would be 540%.  For 5.4% it is 0.054

So you get:
A=3800(1+0.054/12)^(12*0.666667)
A=3800(1.0045)^(8)
A=3800(1.036572)
A=3938.83
0

Experts Exchange Solution brought to you by

Your issues matter to us.

Facing a tech roadblock? Get the help and guidance you need from experienced professionals who care. Ask your question anytime, anywhere, with no hassle.

Start your 7-day free trial
mustish1Author Commented:
Thank You.
0
It's more than this solution.Get answers and train to solve all your tech problems - anytime, anywhere.Try it for free Edge Out The Competitionfor your dream job with proven skills and certifications.Get started today Stand Outas the employee with proven skills.Start learning today for free Move Your Career Forwardwith certification training in the latest technologies.Start your trial today
Math / Science

From novice to tech pro — start learning today.