Ask Me Help Desk

Ask Me Help Desk (https://www.askmehelpdesk.com/forum.php)
-   Mathematics (https://www.askmehelpdesk.com/forumdisplay.php?f=199)
-   -   Compound Interest (https://www.askmehelpdesk.com/showthread.php?t=644125)

  • Mar 17, 2012, 09:33 AM
    seabird01
    Compound Interest
    Please help. Struggling with these two compound interest questions.

    1. How much would you need to invest today to have $4,500 in 6 years and 4
    Months, if interest is 3% compounded quarterly?


    2. John invested $5000 at 1.25% compounded semiannually. After 30 months,
    The interest rate increased by 0.75%. How much will the investment be
    Worth after 5 years?
  • Mar 21, 2012, 08:02 AM
    eeseely
    Using a spreadsheet, divide $4,500 by (1.03)^25.333

    25 comes from (6 yrs times 4) plus 1quarter +1/3 quarter = 25.333

    The answer I got was $2,128.36
  • Mar 21, 2012, 08:22 AM
    eeseely
    Here we have (1.0123)^5 times $5000 = $5,320.41

    Then we have (1.02)^5 times $5320.41 = $5,874.16

  • All times are GMT -7. The time now is 11:39 PM.