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Math Help - Interest vs Discount problem

  1. #1
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    Interest vs Discount problem

    In an effective quarterly rate k of compound interest, 1000 accumulates to 2500 in 20 years. What would be the value after 20 years if the initial deposit of 1000 had grown under an effective quarterly rate k of compound discount?
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  2. #2
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    Get k by solving: 1000(1 + k)^80 = 2500

    I don't know what you mean by "discount"; negative k ?
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  3. #3
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    Quote Originally Posted by Wilmer View Post
    Get k by solving: 1000(1 + k)^80 = 2500

    I don't know what you mean by "discount"; negative k ?
    Discount is related to interest by (1+{i})(1-{d})=1 but thanks. I understand what the problem is asking now.
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