Heres a mathematic challenge for you....

[hawkfan5]

Try and work out these questions, first one to work them out can be granted the prize for 'Bigfooty Mathemetician of 2001', lol.

1. If $1000 is invested at 7.5%pa (compound interest), we can calculate the total amount at the end of a given number of years using the formula:

P (1 + R/100) to power of no. of years

where p= principal

In this case the payout at the end of 7 years would be

$1000 (1 + 7.5/100) to power of 7

What if the interest were calculated and credited to your account each month? Most banks work on a calender month, that is, a given date each month, so the interest rate per annum would be divided by 12. Therefore in the example, the interest rate per month would be 7.5 /12 = 0.625%. To calculate the interest for the same investment, we would use the formula:

P(1+ 0.625/100) to power of no. of months

How much better off would you be after 7 years if the interest rate were calculated monthly instead of per annum?

 

[Fat Red]

$1000 * 1.075 to the pwer of 7 = $1659.05

$1000 * 1.00625 to the power of 84 = $1687.70

1687.70-1659.05=$28.65

 

[hawkfan5]

Originally posted by Fat Red
$1000 * 1.075 to the pwer of 7 = $1659.05

$1000 * 1.00625 to the power of 84 = $1687.70

1687.70-1659.05=$28.65

Quite easy wasn't it? lol. Well it was a challenge for me even if it wasn't for some of you.

Well done mate, you are the winner.

 

[sbagman]

hawkfan, is this just another way for you to get other people to do your homework???? call me cynical.....

 

[QT]

Originally posted by sbagman
hawkfan, is this just another way for you to get other people to do your homework????

I was thinking the same thing

 

[sbagman]

Ok folks, who can write me an introduction to the C5a paper I'm writing? First one wins.....errr..... my admiration.

 

[hawkfan5]

Originally posted by sbagman
Ok folks, who can write me an introduction to the C5a paper I'm writing? First one wins.....errr..... my admiration.

LOL, no actually, I do know how to do this work, and I have handed nearly all of it in.

Just testing you, cause I am bored, and when I did ask questions on my geography assignment you should have realised that I was just asking for peoples opinions so I could make the assignment from different viewpoints and not just from mine.

I am going to post two more problems if you wanna try and work them out.

 

[Stegelator]

Originally posted by hawkfan5


LOL, no actually, I do know how to do this work, and I have handed nearly all of it in.

Just testing you, cause I am bored, and when I did ask questions on my geography assignment you should have realised that I was just asking for peoples opinions so I could make the assignment from different viewpoints and not just from mine.

I am going to post two more problems if you wanna try and work them out.

yeah sure!!