# calculating the number of compounding periods

• Mar 15th 2010, 06:11 AM
diehardmath4
calculating the number of compounding periods
Rounded to the nearest month, how long will it take a town's population to:

b) Shrink from 40,000 to 32,500 if the annual rate of decline is 3?

PV = 40,000
FV = 32,500
n1 = 0.03/1

n = IN ( FV / PV ) / IN ( 1 + i ) In ( 32,500 / 40,000 ) / In ( 1 + 0.3 )

n = - 7.0246 however the answer is 6 years and 10 months

how did they get that ?
• Mar 15th 2010, 07:26 AM
Wilmer
Quote:

Originally Posted by diehardmath4
how did they get that ?

By using (1 - .03) (Wait)
• Mar 15th 2010, 07:33 AM
diehardmath4
nope i'm still getting -7.02
• Mar 15th 2010, 10:07 AM
Wilmer
Log(32500/40000) / Log(.97) = 6.817...or ~6 years 10 months

• Mar 16th 2010, 01:34 PM
diehardmath4
calculating the number of compounding periods ( urgent )
\$7500 was borrowed for a 4 year term at 9% compounded quarterly.The terms of the loan allow prepayment of the loan based on discounting the loan's maturity value at 7% compounded quarterly How long ( to the nearest day ) before the maturity date was the loan prepaid if the payout amount was \$9380.24 including accrued interest ? for the puropese of determining the number of days in a partial calendar quarter, assume that a full quarter has 91 days.

FV = 9380.24
PV = 7500
n =
i = ( confused on )
n = ?

because of the 7% ccompounded quarterly and 9 % compounded quarterly both of them threw me off so i am stuck
• Mar 16th 2010, 04:19 PM
Wilmer
Look, you were told (I think twice already) to start a new thread
if you have a new problem.

Please do so with this problem.
• Mar 16th 2010, 05:06 PM
diehardmath4
i realize my mistake sorry i reposted it somewhere else