MYP Mathematics, Present value

number, algebra, geometry and trigonometry, statistics and probability, discrete mathematics.

MYP Mathematics, Present value

Postby Lucas » Sun Mar 10, 2013 8:58 am

MYP Maths, Financial Mathematics, Compound Interest, Present value

How can we calculate the amount to be deposit into an account to collect $20000 at the end of 6 years if the account is paying 4% per annum compounded every month?
Thanks
Lucas
 
Posts: 0
Joined: Mon Jan 28, 2013 8:05 pm

Re: MYP Mathematics, Present value

Postby miranda » Sun Mar 10, 2013 9:21 am

MYP Mathematics, Financial Mathematics, Compound Interest, Present value

The general compounding formula is:


Where F is the future value of the investment (=$20000), P the principal, r is the interest rate per compound period and n is the number of compounding periods (=6*12=72 months).

Therefore




Hope these help!! :lol:
miranda
 
Posts: 268
Joined: Mon Jan 28, 2013 8:03 pm

Re: MYP Mathematics, Present value

Postby Lucas » Sat Apr 06, 2013 7:56 pm

thanks miranda!!
Lucas
 
Posts: 0
Joined: Mon Jan 28, 2013 8:05 pm

Re: MYP Mathematics, Present value

Postby Lucas » Sat Apr 06, 2013 7:57 pm

thanks miranda!!
Lucas
 
Posts: 0
Joined: Mon Jan 28, 2013 8:05 pm


Return to MYP mathematics