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  • Jun 26, 2007, 10:15 AM
    josephfrankel
    Compound Interest
    If an investment is up 88% over 6 years (simple interest) what is the compound rate of growth per anum.

    My question was not for the purposes of homework.. I need the number for a real world reason. Unfortunately, I am very bad in math and could never figure out how to do this formula
  • Jun 26, 2007, 10:22 AM
    ebaines
    The formula for simple compound interest is:

    Where is the interest rate per year and is the number of years.
    Here you know that "Future Value" is 1.88 times the initial value, and N is 6 years. Can you now determine the value for i? It's easiest to solve this using logarithms.
  • Aug 25, 2007, 03:41 AM
    raaj
    What is the formula of compound interest

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