Help on a math problem please. Finding Principal Rate, page 1

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ATS Members have flagged this thread 1 times

reply posted on 28-4-2012 @ 10:33 PM by Manhater
Here's an easy way if you ever have problems guys.

Now this example I can understand in terms of how they solved their answer.
www.algebra.com...

Assume P=100
Amount = double = 200
n= 15 years
compounded annualy = q=1
i = rate of interest =?
...

Formula for compound interest
..
i = q([A/P]^1/nq - 1).
i=1*((200/100)^(1/15*1)-1)
i=0.0472
rate = 4.729%

edit on 28-4-2012 by Manhater because: (no reason given)

reply posted on 28-4-2012 @ 10:40 PM by TurkeyTots

Inflation doesn't matter in this scenario, as it will only affect the money's worth/value, not the actual number. The problem is to double the amount, not to double the amount it's worth.

reply posted on 28-4-2012 @ 10:40 PM by LightSpeedDriver

Good point! Not to mention, aren't taxes liable over the interest earned?
ETA I don't understand maths at all, hence I waited till someone gave an enlightened answer.
edit on 28/4/12 by LightSpeedDriver because: ETA

reply posted on 28-4-2012 @ 10:51 PM by pheonix358
Originally posted by TurkeyTots
post by pheonix358

Inflation doesn't matter in this scenario, as it will only affect the money's worth/value, not the actual number. The problem is to double the amount, not to double the amount it's worth.

I am sorry but the real question in this is "How do I double my money?"

Your answer (no insult intended .... at all!) is the sought of BS answer that home borrowers who don't understand maths at this level get sideswiped by. The answer is way out side the limits of the real world. "Double the investment" means double what my money can buy ..... not double the amount!

Now you can start to understand the underlying principals of the financial crisis. It is this type of BS maths that directly led to people, ordinary people being shafted with the biggest financial shaft in their lives!

And, yes take tax into account as well as pointed out above and while your at it add bank fees and charges and all the other amounts that scream greed as every Tom Dick and Mary stick a finger in the pie!

P
edit on 28-4-2012 by pheonix358 because: Other good posters added

reply posted on 29-4-2012 @ 08:05 AM by jerryznv

I would go HERE...and see if it could be answered in a forum...it's been purposed!

Another good problem...with a relatively simple solution...gather them together!

reply posted on 1-5-2012 @ 02:59 PM by Manhater

Pre-Calculus

Tomorrow is Doomsday.

A hit or miss on my 100%

I know I got an A anyway. Unless she counts my absences then I'm in trouble
edit on 1-5-2012 by Manhater because: (no reason given)

reply posted on 10-5-2012 @ 03:30 PM by darkbake

Cool, sounds like you are a good student. Yeah, I totally miss class all the time, too... and get good grades. I know how that is.
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