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principal amount

by ildude02 » Wed Jul 16, 2008 1:15 pm
If the amount X depositied in October increased by 4% every month, what was the principal(in terms of x) after the end of 7 months?

Can we apply the formulae here?
Last edited by ildude02 on Thu Jul 17, 2008 11:09 am, edited 1 time in total.
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by VP_Tatiana » Thu Jul 17, 2008 11:01 am
Hi there,

I am assuming that you are saying the principle increased by 4% in 7 months. We need to know the time period that relates to that increase. In that case, the principle would be 104%X after 7 months.

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by ildude02 » Thu Jul 17, 2008 11:11 am
Sorry, I updated the question to say that it increased by 4% every month. So, what's the principal at the end of the 7th month.
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by AleksandrM » Thu Jul 17, 2008 5:14 pm
If it increased by 4% every month for 7 months, then you need to

X(1.04)(1.04)(1.04)(1.04)(1.04)(1.04)(1.04)

Enjoy the calculation!
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by AleksandrM » Thu Jul 17, 2008 5:16 pm
What are the answer choices by the way? I hope that one of them is expressed as X(1.04)^7
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