A question is a compound interst related problem for finiancial calculation.?
Answer:
A little over 9% compounded annually. (Actually about 9.8%, I did this in my head) and that is quite high, you'll need another investment to yield that high of a return
I'm wondering how the math was done with the answers that gave 8.1% as an answer. I did this in my head but we disagree on almost a full interest point. The return is $4800. And now the calculator shows $10,200 X 9.5% is $4845 which is how I believe I was taught to figure interest. Can someone explain the discrepancy before I really have to get left brained? Math not my strongest subject but this is just simple interest.
Yes.
Let me know what bank you do because that is about 9%
8.01851873%
you can check my answer by doing:
10200 X (1.0801851873)^5=15000
I am sorry to say, only in a finance book can you yield that high of a return on a savings, virtually impossible on the Planet Earth.
PresentValue: $10200
Future Value: $15000
Length of Investment: 5
Interest Rate: 8.01085188%
FV = PV * [( 1 + r )n]
15000 = 10200 [( 1 + .080185188)5]
15000 = 10200 [( 1.080185188)5]
15000 = 10200 ( 1.47058824 )
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