The first forum for Mathematics compatible also with ib mathematics (HL,SL,studies,myp mathematics) - ib math Revision Notes

4 posts
• Page **1** of **1**

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

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

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!!

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!!

- miranda
**Posts:**268**Joined:**Mon Jan 28, 2013 8:03 pm

4 posts
• Page **1** of **1**