1: how much would you have in the bank if you invest as follows?
a. £450 at 3% interest per annum for 4 years?
b. £6000 at 4.5% interest per annum for 7 years?
2. Stocks and shares can decrease in value as well as increase. How much would your stocks and shares be worth if you had invested as follows?
A. £1000, which lost 14% each year for 3 years?
B. £750, which lost 5.2% each year for 5 years?
for the first one I did it the long way on paper as:
450 x 1.03 = 463.5
463.5 x 1.03 = 477.405
477.405 x 1.03 = 491.72
491.72 x 1.03 = 506.47
Amount after 4 years = £506.47.
Can someone tell me if I did that right? But now I'm at home I want to use a calculator to do it quicker, if I used a calculator for the first question (as an example) waht would I type in? Because I thought it would be 450 x1.03^4 but I get 459 as the answer... I'm so confused:( if someone could help me with all of them I'd be so grateful! And tell be what I'm doing wrong? ;[
I know this is kinda long but I realllllyy need help fast..
a. £450 at 3% interest per annum for 4 years?
b. £6000 at 4.5% interest per annum for 7 years?
2. Stocks and shares can decrease in value as well as increase. How much would your stocks and shares be worth if you had invested as follows?
A. £1000, which lost 14% each year for 3 years?
B. £750, which lost 5.2% each year for 5 years?
for the first one I did it the long way on paper as:
450 x 1.03 = 463.5
463.5 x 1.03 = 477.405
477.405 x 1.03 = 491.72
491.72 x 1.03 = 506.47
Amount after 4 years = £506.47.
Can someone tell me if I did that right? But now I'm at home I want to use a calculator to do it quicker, if I used a calculator for the first question (as an example) waht would I type in? Because I thought it would be 450 x1.03^4 but I get 459 as the answer... I'm so confused:( if someone could help me with all of them I'd be so grateful! And tell be what I'm doing wrong? ;[
I know this is kinda long but I realllllyy need help fast..
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Your first answer is correct.
So is your calculation 450 x 1.03^4.
Not all calculators work in the same way. Either you have an older calculator, or you are not using it correctly.
I would advise doing it in two stages.
First, work out 1.03^4. Press the = key.
Leaving that answer in the display then press "x 450 =". And that will give the correct answer.
So the second one is 1.045^7 x 6000
The next question concerns losses, so instead of adding the rate, you subtract it.
1000 x (1 - 0.14)^ = 1000 x 0.86^3 = 636.06
750 x (1 - 0.052)^5 = 750 x 0.948^5 = 574.25
So is your calculation 450 x 1.03^4.
Not all calculators work in the same way. Either you have an older calculator, or you are not using it correctly.
I would advise doing it in two stages.
First, work out 1.03^4. Press the = key.
Leaving that answer in the display then press "x 450 =". And that will give the correct answer.
So the second one is 1.045^7 x 6000
The next question concerns losses, so instead of adding the rate, you subtract it.
1000 x (1 - 0.14)^ = 1000 x 0.86^3 = 636.06
750 x (1 - 0.052)^5 = 750 x 0.948^5 = 574.25