^ .25?

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^ .25?

by mq1027 » Tue Feb 19, 2013 10:50 am
If 6 means to the power of- what does (1000*1.12)^.25 mean? (calculating NPV=((pR/(1+r)^t)-C)

sales price= 1200
investmt = 1000
collection pd=3 mos
req. rate = 12%

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by Jim@StratusPrep » Tue Feb 19, 2013 3:57 pm
^.25 is the same as taking the square root twice
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by brianlange77 » Tue Feb 19, 2013 7:03 pm
mq1027 wrote:If 6 means to the power of- what does (1000*1.12)^.25 mean? (calculating NPV=((pR/(1+r)^t)-C)

sales price= 1200
investmt = 1000
collection pd=3 mos
req. rate = 12%
Just think of it as being raised to the 1/4th power. Meaning you want to take the 4th root.
Right?
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