Results 1 to 4 of 4

Math Help - Geometric Sequence Question...

  1. #1
    Member looi76's Avatar
    Joined
    Jan 2008
    Posts
    185

    Geometric Sequence Question...

    Question:
    Fatima invests \$100 per month for a complete year, with interest added every month at the rate of \frac{1}{2}\% per month at the end of the month. How much would she have had to invest at the beginning of the year to have the same total amount after the complete year?

    Attempt:
    \frac{100(1-1.005^{12})}{(1-1.005)} = \$1233.56
    Don't know what to do next!
    Follow Math Help Forum on Facebook and Google+

  2. #2
    Super Member
    earboth's Avatar
    Joined
    Jan 2006
    From
    Germany
    Posts
    5,810
    Thanks
    116
    Quote Originally Posted by looi76 View Post
    Question:
    Fatima invests \$100 per month for a complete year, with interest added every month at the rate of \frac{1}{2}\% per month at the end of the month. How much would she have had to invest at the beginning of the year to have the same total amount after the complete year?

    Attempt:
    \frac{100(1-1.005^{12})}{(1-1.005)} = \$1233.56
    Don't know what to do next!
    According to your question the interest rate is 6% p.a. She wants to get the same amount of money at the end of the year:

    If A_I is the initial amount then solve the equation

    \$1233.56 =(1+0.06) \cdot A_I

    for A_I. I've got A_I = \$1163.74
    Follow Math Help Forum on Facebook and Google+

  3. #3
    Member looi76's Avatar
    Joined
    Jan 2008
    Posts
    185
    Quote Originally Posted by earboth View Post
    According to your question the interest rate is 6% p.a. She wants to get the same amount of money at the end of the year:

    If A_I is the initial amount then solve the equation

    \$1233.56 =(1+0.06) \cdot A_I

    for A_I. I've got A_I = \$1163.74
    from where did u get 6\%
    Follow Math Help Forum on Facebook and Google+

  4. #4
    Flow Master
    mr fantastic's Avatar
    Joined
    Dec 2007
    From
    Zeitgeist
    Posts
    16,948
    Thanks
    5
    Quote Originally Posted by looi76 View Post
    Question:
    Fatima invests \$100 per month for a complete year, with interest added every month at the rate of \frac{1}{2}\% per month at the end of the month. How much would she have had to invest at the beginning of the year to have the same total amount after the complete year?
    [snip]
    Quote Originally Posted by looi76 View Post
    from where did u get 6\%
    Given: \frac{1}{2}\% per month.

    Known: 12 months in the year.

    Therefore: Interest rate per annum is 12 \times \frac{1}{2}\% = 6 \%.
    Follow Math Help Forum on Facebook and Google+

Similar Math Help Forum Discussions

  1. geometric series/sequence given question
    Posted in the Pre-Calculus Forum
    Replies: 1
    Last Post: July 12th 2010, 01:41 AM
  2. simple geometric sequence question
    Posted in the Algebra Forum
    Replies: 2
    Last Post: November 29th 2009, 09:36 PM
  3. Question about geometric sequence
    Posted in the Pre-Calculus Forum
    Replies: 2
    Last Post: December 15th 2008, 10:59 AM
  4. Infinite geometric sequence question
    Posted in the Pre-Calculus Forum
    Replies: 3
    Last Post: July 26th 2008, 10:11 AM
  5. geometric sequence question
    Posted in the Pre-Calculus Forum
    Replies: 4
    Last Post: July 26th 2008, 10:09 AM

Search Tags


/mathhelpforum @mathhelpforum