BREAKING: Target Test Prep releases Brand New 2026 On Demand GMAT prep course

Redeem

interest rate

This topic has expert replies
Post new topic Post Reply
Previous Topic Next Topic
Source: — Problem Solving |
Legendary Member
Posts: 661
Joined: Tue Jul 08, 2008 12:58 pm
Location: France
Thanked: 48 times

by pepeprepa » Sun Aug 10, 2008 6:25 am
I do not know if the formulas in the OG review are useful, I do without them indeed.

5,6% every year during 3 years with 1000 at the beginning.
For the second year result you multiply the interest + the total amount invested by 1,056 and to the same for the third year.
T=((1000*1,056)*1,056)*1,056
T=1000*(1.056)^^3
Top
Legendary Member
Posts: 829
Joined: Mon Jul 07, 2008 10:09 pm
Location: INDIA
Thanked: 84 times
Followed by:3 members

by sudhir3127 » Sun Aug 10, 2008 7:00 am
formula is

P( 1+r/100)^t

1000 ( 1 +5.6/100)^3

hence 1000( 1.056)^3

hope it helps..
Top
Master | Next Rank: 500 Posts
Posts: 288
Joined: Thu Jul 31, 2008 10:54 pm
Location: Bombay, India

by missionmba » Sun Aug 10, 2008 7:13 am
sudhir3127 wrote:formula is

P( 1+r/100)^t

1000 ( 1 +5.6/100)^3

hence 1000( 1.056)^3

hope it helps..
This formula is correct but thr is one more

P( 1+r/100n)^tn

n for how the interest is compounded
i.e if intrest is compounded semi anually n is 2
if intrest is compounded anually n is 1
n like that.

pls correct me if i am wrong
Mission Mba

Everyone has a will to win but very few have the will to prepare to win
Top
Legendary Member
Posts: 829
Joined: Mon Jul 07, 2008 10:09 pm
Location: INDIA
Thanked: 84 times
Followed by:3 members

by sudhir3127 » Sun Aug 10, 2008 7:30 am
ur right.. actually i thought it self understood that if its semi annumal the the number of yrs should be doubled. Nonetheless .. good point..

thank u!!
Top
Post new topic Post Reply
• Page 1 of 1