accounting problem!

[royCE]

unleash the whirlwinds!

a deposit of 300 dollars made at the end of every six months for five years would grow to WHAT AMOUNT assuming 8% interest compounded semiannually?

[Eric is God]

unleash the whirlwinds!

a deposit of 300 dollars made at the end of every six months for five years would grow to WHAT AMOUNT assuming 8% interest compounded semiannually?

I'm a little rusty on this stuff but I got $3,601.83. The problem seems a little too easy as the payments occur at the same rate of the compounding so I could be wrong...

BTW, exactly how long am I supposed to help you through university Royce :P

[royCE]

it said it was wrong...whats bugging me is the fact that 300 dollars are being deposited every 6 months, so does this effect the compound interest? which means you will basically have to add the change from each additional 300 to the next ammount, for basically 10 period...correct? and i cant figure out the formula for the death of me

[royCE]

lol so true, i remember 3 years ago freshman year, i was gettin on ss just to pray i see you online for some econ homework :X

[royCE]

omg omg u were right u fuckin genious i love you! the answer didnt want to take .83 but it took .8.....wowowowow I LVOE YOU NOW PLEASE SHOW ME HOW U GOT IT

[Eric is God]

omg omg u were right u fuckin genious i love you! the answer didnt want to take .83 but it took .8.....wowowowow I LVOE YOU NOW PLEASE SHOW ME HOW U GOT IT

Well you would normally plug it into a formula, but I set it up in Excel. There are 10 periods (every 6 months for 5 years) and use an interest rate of 4% per period (8% annually = 4% semi annually). As the payments are made are made at the end of each period there is no interest paid after the first period and make sure that interest is calculated on the starting value before adding the next $300.

Period 1 Value = 300
Period 2 Value = Period 1 Value*(1+0.04)+300
etc..

[royCE]

no wonder ur name is eric is god...i swear i had that formula in mind but didnt have the knowledge to bring it out of me...so simple too bah, thank you man, well appreciated

[PjOtTeR]

If you srsly needed help with that I srsly would suggest you to drop out of college...

[Money]

lol nerd cant math

[Xog]

semiannually?

semiannual

semi

I'd post pictures of his body parts found but that'd get me banned :<

x0g @ b0g!

[Vykromond]

how can such a huge nerd be so bad at math that he can't even do simple multiplication

[RATTY...]

This is something an 8th-grader could do, is the university you're attending for retarded people?

[phata$$]

This is something an 8th-grader could do, is the university you're attending for retarded people?

Yes.

[Eric is God]

This is something an 8th-grader could do, is the university you're attending for retarded people?

I think you guys are being a little too rough. It is not a difficult question, but it is not something that is generally introduced to students until late highschool or early university, assuming they even take the necessary courses.

These kinds of financial questions are notorious for confusing people because some have trouble understanding the time dimension involved. I could probably have done this in my head if I tried, but I had a huge problem dealing with linear algebra in university (got a C- I believe) and my friends couldn't believe I would have trouble with any math course.

[Vykromond]

there's linear algebra and then there's, y'know, arithmetic