Results 1 to 6 of 6

Math Help - interest

  1. #1
    Member
    Joined
    Sep 2009
    Posts
    83

    interest

    Hello everyone,

    My question is this and is very specific:

    100000 euros deposited on 1 January in a bank at 8% annually.
    What is the value at the end of each quarter of the year?

    Is this correct?:

    Amount = C(1 + i*n).

    n taking the value of 3 to calculate the value of the first quarter.

    But I would not know if i = 0.08.

    A greeting
    Follow Math Help Forum on Facebook and Google+

  2. #2
    MHF Contributor
    Joined
    Dec 2007
    From
    Ottawa, Canada
    Posts
    3,085
    Thanks
    67
    Hint:
    100000 * 1.02 * 1.02 * 1.02 * 1.02

    (assumes 8% annual, compounded quarterly)
    Follow Math Help Forum on Facebook and Google+

  3. #3
    Member
    Joined
    Sep 2009
    Posts
    83
    Sorry, you mean rather 0.02?
    Follow Math Help Forum on Facebook and Google+

  4. #4
    MHF Contributor
    Joined
    Dec 2007
    From
    Ottawa, Canada
    Posts
    3,085
    Thanks
    67
    Quote Originally Posted by Dogod11 View Post
    Sorry, you mean rather 0.02?
    NO, I don't; question is:
    "What is the value at the end of each quarter of the year?"
    Follow Math Help Forum on Facebook and Google+

  5. #5
    Member
    Joined
    Sep 2009
    Posts
    83
    Ok. but I honestly do not understand what the 1.02, could be better explained, then how would the calculation in the formula that put it?

    Thanks
    Follow Math Help Forum on Facebook and Google+

  6. #6
    MHF Contributor
    Joined
    Dec 2007
    From
    Ottawa, Canada
    Posts
    3,085
    Thanks
    67
    100000.00 * 1.02 = 102000.00 (end Q1)
    102000.00 * 1.02 = 104040.00 (end Q2)
    104040.00 * 1.02 = 106120.80 (end Q3)
    106120.80 * 1.02 = 108243.216 (end Q4)

    100000.00(1.02)^4 = 108243.216
    Follow Math Help Forum on Facebook and Google+

Similar Math Help Forum Discussions

  1. Calculate interest rate based on interest in parcels
    Posted in the Business Math Forum
    Replies: 1
    Last Post: February 17th 2011, 09:38 PM
  2. Compound interest at changing interest rates
    Posted in the Business Math Forum
    Replies: 2
    Last Post: October 21st 2010, 04:55 AM
  3. Interest
    Posted in the Calculus Forum
    Replies: 0
    Last Post: December 1st 2008, 07:56 PM
  4. interest
    Posted in the Business Math Forum
    Replies: 1
    Last Post: May 14th 2008, 09:40 AM
  5. Replies: 0
    Last Post: March 18th 2007, 01:31 PM

/mathhelpforum @mathhelpforum