Re: on a compound interest problem

From	Daniel Bastos <dbastos@toledo.com>
Newsgroups	alt.algebra.help
Subject	Re: on a compound interest problem
Date	2017-08-10 13:03 -0300
Organization	Aioe.org NNTP Server
Message-ID	<861soj76lo.fsf@toledo.com> (permalink)
References	<867f3lo0m3.fsf@toledo.com> <paptcc9hhg8cejff2ti6j46im0djk400lu@4ax.com> <86o9wwn9im.fsf@toledo.com> <oh5lcf$kjs$1@dont-email.me> <oh5lkr$kjs$2@dont-email.me>

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Alla <vitale.alla@gmail.com> writes:

> On 6/6/17 10:30, Alla wrote:
>> On 3/20/17 02:15, Daniel Bastos wrote:
>>> Barry Schwarz <schwarzb@dqel.com> writes:
>>>
>>>> On Sun, 19 Mar 2017 10:30:12 -0300, Daniel Bastos <dbastos@toledo.com>
>>>> wrote:
>>>>
>>>>> I say this problem's formula is incorrect, but I'd appreciate an expert
>>>>> confirmation.
>>>>>
>>>>> Problem.  Consider an amount q invested for n years at an
>>>>> interest rate j.
>>>>> The total amount after n years is given by the formula
>>>>>
>>>>>   gf = q * ((1 + j/100) + (1 + j/100)^2 + ... + (1 + j/100)^n).
>>>>
>>>> This is the formula for q invested **each year** over a length of n
>>>> years.
>>>
>>> That's probably what the problem meant. 
>>
>> You can see that by opening the brackets.
>> Using a simple example, where q = 100, n = 3, and rate 0.05
>>
>> # invest 100 in the first year, and get the first year's future value of
>>    FV = 100 * 1.05 = 105
>>
>> # at the end of the first year you add again 100 to those 105, and
>> get at the end of the second year:
>>    (100 + 105) * 1.05 = 215.25
>>
>> # at the end of the second year you add again 100 to 215.25, and get
>> at the end of the third year:
>>    (100 + 215.25) * 1.05 = 331.01
>
> Sorry! I have only now noticed that it was posted in March, so I guess
> the issue is solved long time ago.

The OP is still here and appreciates your posting.  Thank you!

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Thread

on a compound interest problem Daniel Bastos <dbastos@toledo.com> - 2017-03-19 10:30 -0300
  Re: on a compound interest problem Barry Schwarz <schwarzb@dqel.com> - 2017-03-19 13:11 -0700
    Re: on a compound interest problem Daniel Bastos <dbastos@toledo.com> - 2017-03-19 20:15 -0300
      Re: on a compound interest problem Alla <vitale.alla@gmail.com> - 2017-06-06 10:30 +0300
        Re: on a compound interest problem Alla <vitale.alla@gmail.com> - 2017-06-06 10:34 +0300
          Re: on a compound interest problem Daniel Bastos <dbastos@toledo.com> - 2017-08-10 13:03 -0300

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