help to breakdown 15849 = 5000 * {1 - [(1 + 10%)] -4} /10% ...

hello guys,

another problem here which require your explanation here... I dont see how that formula before will obtain 15,849, i'm not too sure if the texbook meant 50,000 and not 5000. thanks in advance for your help...

15849 = 5000 * {1 - [(1 + 10%)] ^{-4}} /10%

Re: help to breakdown 15849 = 5000 * {1 - [(1 + 10%)] -4} /10% ...

Quote:

Originally Posted by

**schia** hello guys,

another problem here which require your explanation here... I dont see how that formula before will obtain 15,849, i'm not too sure if the texbook meant 50,000 and not 5000. thanks in advance for your help...

15849 = 5000 * {1 - [(1 + 10%)] ^{-4}} /10%

1. Re-write the percentages by decimal numbers:

$\displaystyle 5000 \cdot \frac{1 - (1 + 0.1)^{-4}}{0,1}$

2. Calculate the inner brackets first:

$\displaystyle 5000 \cdot \frac{1 - 0.683013455}{0,1}$

$\displaystyle 50000 \cdot 0.316986544 \approx 15849.32723$

Re: help to breakdown 15849 = 5000 * {1 - [(1 + 10%)] -4} /10% ...

Hey schia.

These units are not right: you are using percentages so does this refer to a percentage of some unit or just a straight fraction?