Jasmin C.

asked • 07/10/15

Compound Interest question :/?

So Ive worked out the example question and the compound interest formula is A=P(1+r/n)nt .
 
After inputting: A=8000(1+ 0.09/4)4*55  I get 8000(1.0225)220 . 
 
It says the total will be $1,069,103.27 but I don't understand how you get that. Like I don't know how on a calculator that I would be able to multiply 8000(1.0225) by the exponent of 220.
 
And it doesn't detail in the book how you would solve it either :/ .
 

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Peter C. answered • 07/10/15

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Does your calculator have a button for y to the x power?
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Jasmin C.

Yes! But I just tried to input it but it read error when I put (8180)220 :/
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07/10/15

Michael W.

Jasmin,
 
Your formula says that you need to calculate this expression:  8000(1.0225)220.  Seems right so far.
 
So, what do you raise to the 220th power?  It sounds like you're multiplying 8000 * 1.0225 first...but doesn't order of operations say that you do exponents before multiplication?  So, if that's true, then I don't think you're doing the operations in the right order...
 
Does that help?
 
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07/11/15

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