Results 1 to 3 of 3

Math Help - accumulated and discounted value for a fractional period of time

  1. #1
    Newbie
    Joined
    Oct 2010
    Posts
    4

    accumulated and discounted value for a fractional period of time

    The only question im not getting out of all my homework, all the other questions had close examples i could follow this ones a changeup couldnt figure it out

    A note for $1200 dated Aug24,2005, is due with interest at j12=8.75% in 2 years. On June18,2006, the holder of the note has it discounted by a lender who charges 9.5% compounded quarterly. Calculate the proceeds and the compound discount.
    All help is appreciated
    Follow Math Help Forum on Facebook and Google+

  2. #2
    MHF Contributor
    Joined
    Dec 2007
    From
    Ottawa, Canada
    Posts
    3,100
    Thanks
    67
    Quote Originally Posted by teerplid View Post
    The only question im not getting out of all my homework, all the other questions had close examples i could follow this ones a changeup couldnt figure it out

    A note for $1200 dated Aug24,2005, is due with interest at j12=8.75% in 2 years. On June18,2006, the holder of the note has it discounted by a lender who charges 9.5% compounded quarterly. Calculate the proceeds and the compound discount.
    All help is appreciated
    due in 2 years = f = 1200(1 + .0875/12)^24 : IF j12 means compounded monthly

    Jun 18/06 to Aug 24/07 = 4 quarters plus 67 days, so 4+67/90 quarters : IF quarter = 90 days

    proceeds = f / (1 + .095/4)^(4+67/90)

    Can you wrap it up?
    Follow Math Help Forum on Facebook and Google+

  3. #3
    Newbie
    Joined
    Oct 2010
    Posts
    4
    Thank you very much and yes i should be able to wrap it up now, nuthing in the textbook was showing me how to do the question was stuck on it for a while, thanks again
    Follow Math Help Forum on Facebook and Google+

Similar Math Help Forum Discussions

  1. time period 2
    Posted in the Business Math Forum
    Replies: 3
    Last Post: March 3rd 2010, 10:24 AM
  2. determining the time period
    Posted in the Business Math Forum
    Replies: 1
    Last Post: March 2nd 2010, 10:37 PM
  3. How to find the period of the time series
    Posted in the Statistics Forum
    Replies: 0
    Last Post: November 18th 2009, 04:37 PM
  4. [SOLVED] Time period of oscillations?
    Posted in the Advanced Applied Math Forum
    Replies: 1
    Last Post: May 30th 2009, 12:48 AM
  5. Deteriminig the time period
    Posted in the Algebra Forum
    Replies: 5
    Last Post: March 2nd 2009, 08:33 AM

Search Tags


/mathhelpforum @mathhelpforum