I need an equation or an answer?

I need an equation or an answer? Here%26#039;s the rub, have friend had a kid. wanna start a little college fund. O.K. here%26#039;s the problem. 100 dollars, 5% intrest a month for 18 years how much would that be?

Best Answer - Chosen by Voters

If it is compound interest,
Amount = 100 x (1.05)^(18 x 12)
=$3774753.52

If it is simple interest,
Amount = 100 + 0.05(100)(18 x 12)
= 1180

5% interest a month is ALOT. Banks usually give compound interest rates by year not by month. 100% 1 Vote

Other Answers (2)

1OO (1 + O.O5/12)^12*18
= $245.5O

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explanation of equation:
P(1 + r/t)t*y

P=PRINCIPAL
R=RATE
T=TIMES INTEREST RATE IS COMPOUNDED
(EX: 5% A MONTH EQUALS 12)
Y=YEARS

*the little arrow ^ is the symbol for having it to be an exponent
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I just finished Algebra II
and we learned about interest rates and such.

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Freds equation on the compound interest is correct.
just the answer is wrong.
He didn%26#039;t do the order of operations correctly.. 0% 0 Votes

Answer Over!
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