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Math Help - Nominal Interest

  1. #1
    Junior Member
    Joined
    Sep 2010
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    41

    Nominal Interest

    Am i doing this right and if so how do i solve from this point?

    Year 1 = 1000 -> Year 6 = 1725
    Interest taken 4 times a year -> 24 times total

    A=P(1+i)^n
    1725=1000(1+i)^24
    1.725=(1+i)^24

    (so what now? if this is right)
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  2. #2
    Junior Member
    Joined
    Sep 2010
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    actually i solved it from that and got

    i = 0.022977...

    does the nominal rate of interest = 0.02 or 2.30

    (if i did that right :P)
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  3. #3
    Junior Member
    Joined
    Sep 2010
    Posts
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    nvm so i times 0.022977... by 4 to get the quarterly rate = 0.0919 to get a % of 9.19%

    :P

    (solved)
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