math q! (1 Viewer)

[Lemonlime]

someone invests $2000 at 9% per year compound interest, compounded monthly. calculate the total interest earned by the investment after 6 years.


answer: 4 (...WHY?!)

i got something like $3425.11 ...

 

[Uniqueness]

Are you sure that's the right answer? Maybe it's for a different question? Which book is it from? It doesn't even look logical -_-

 

[zombies]

yup I got 3425.11 as well

 

[Shadowdude]

$3425.11 isn't the interest earned, that's just the amount the $2000 grows to after 6 years.

The interest earned would be $3425.11 - $2000 = $1425.11. Right?

 

[zombies]

$3425.11 isn't the interest earned, that's just the amount the $2000 grows to after 6 years.

The interest earned would be $3425.11 - $2000 = $1425.11. Right?

Haha my bad, yes Shadow is right

 

[Uniqueness]

oh btw I got 3178.5 for some reason :/

 

[Uniqueness]

$3425.11 isn't the interest earned, that's just the amount the $2000 grows to after 6 years.

The interest earned would be $3425.11 - $2000 = $1425.11. Right?

yeesshh. Can you please figure out where i did wrong? :/

 

[Shadowdude]

yeesshh. Can you please figure out where i did wrong? :/

Well, what's your working?


$2000 at 9% per year compound interest, compounded monthly. That is, (9/12)% = 0.75% per month. 6 years is 72 months.

So in 6 years, the compounding will make the $2000 worth:



We put in $2000 originally, so we subtract the $2000 to get the pure interest.

 

[Lemonlime]

Thanks guys, yeah it was probably a typo :L

 

[Uniqueness]

Well, what's your working?


$2000 at 9% per year compound interest, compounded monthly. That is, (9/12)% = 0.75% per month. 6 years is 72 months.

So in 6 years, the compounding will make the $2000 worth:



We put in $2000 originally, so we subtract the $2000 to get the pure interest.

Oh got it. Stupid mistake. I divided 9% instead of 9 >_<