Can somebody explain?

1) A savings account is compounded quarterly. How many times must you figure the interest if the money is left in the account for 3 years?

2) Jake has $500.00 in a account that is compounded semi-annually. If this account earns 4% annually, How much money would Jake have after 2 years?

3) If a shirt was originally priced at $58.00 and the sale price was $43.50. What was the percent of the discount given?

Please help! I don’t understand this at all! 🙁

## Im Confused On These 3 Math Problems!? 10 Points!?

November 14th, 2012 admin

1)12

2) $540.80

3) 25%

Not really into finance or interest related problems, but this may be right

compounded quarterly = 4 times/yr = 12 times over 3 years

semi-annually = twice a year. 500 x 1.02^4 = $541.22

100 x (58 – 43.5)/58 = 25%

1) 75 ?

2) 540 ?

3) 13% ?

That’s the answers I got 🙂

It might be right .

3: $58 – $43.50 = $14.50. $14.50 / $58 = .25 The answer is 25%. To double check, you can take $58 x 25% and the answer is $14.50 which is the discount.

1) if an account is compounded quarterly that means that interest is collected on that account 4 times a year. (Quarter-4). Compounded just means that the interest is compounded. So it is compounded 12 times in 4 years because 4*3=12

2) compounded semi-annually means interest is collected twice a year. If it earns 4% annually and the account is compounded, that in effect means that the first half of the year you get 2% of 500 in interest. (If it were compounded quarterly and you got and annual interest rate of 4%, than you would get a 1% interest every quarter of the year) So $10. The second half of the year you get interest on the interest you earned plus the original amount. That’s what the term compounded means, because the interest is “compounded” on. So after the first year you have $520.20. Because you got to add the interest you earned from the first half of the year to the amount that you get interest on in the second half of the year. And 2% of $510 is 10.20. 10.20 + 510 = 520.20. Do this same process twice and the final answer is $541.22.

3) 58.00-43.50=14.50. So the shirt was discounted $14.50. you need to find out what percentage 14.50 is of the original price (58.00). You can get that by setting up a ratio. 58.00/14.50 = 100%/x. Cross multiply to get x. So it is 1450=58x. X=25. So a 25% discount was given

1) 3 years * 4, so it would be compounded 12 times. If you know the formula that will be the power.

2)y=$500(1+(.04/2)^2(2)

Y=500(1+.02)^4

Y=500(1.02)^4

Y=500(1.082)

=$541.22

3)since percentage is noted as a decimal you would times the original amount by the decimal to get the amount off. So

$58(x)=$43.50 divide by 58

X=$43.50/58

X=.75 which is what is left of the original total leaving .25 as the difference. So 25%

***(I’m not sure if there is another/easier approach to this one)***