Stumped x

06-05-2006, 01:56 AM

Hello,

I am having trouble calculating the compound continous amount of a problem and Present Value.

For example,

Jessica plans to borrow $15,000 from a bank that charges 12% compounded continiously. If she pays back the money in 4 years, how much will she have paid. A = PeRT (raised)

15000e x 0.48 (raised) however I can not get the proper answer on my calculator however the teacher does say the formula is correct

I'm not sure what I am doing wrong? Or why I can not come up with the correct answer? ($24,241.12)

Another of the problems on my last quiz was

Find the present value of $12,000 at 5% compounded continously for 3 years.

My teacher gave us this formula P= A

-----

e RT (raised)

Now I can get the formula the teacher wants out of the problem

P = 12,000

______

e .15 (raised)

I'm not sure what I am doing wrong? Or why I can not come up with the correct answer? ($10,328.50)

Any help would be greatly appreciated.

Thank you

I am having trouble calculating the compound continous amount of a problem and Present Value.

For example,

Jessica plans to borrow $15,000 from a bank that charges 12% compounded continiously. If she pays back the money in 4 years, how much will she have paid. A = PeRT (raised)

15000e x 0.48 (raised) however I can not get the proper answer on my calculator however the teacher does say the formula is correct

I'm not sure what I am doing wrong? Or why I can not come up with the correct answer? ($24,241.12)

Another of the problems on my last quiz was

Find the present value of $12,000 at 5% compounded continously for 3 years.

My teacher gave us this formula P= A

-----

e RT (raised)

Now I can get the formula the teacher wants out of the problem

P = 12,000

______

e .15 (raised)

I'm not sure what I am doing wrong? Or why I can not come up with the correct answer? ($10,328.50)

Any help would be greatly appreciated.

Thank you