Thread: Word Problem using compound

hello all!

I want to start out by saying I know how to get the answer to this problem... I am specifically looking for the FORMULA to solve a problem like this. Thanks!

STARTING WITH $0.00
I have an income of $10,000 an hour
I have “30” stock
To buy “1” stock you must pay $20,000; i.e.: In two hours I will be able to buy “1 stock” for a total of “31 stock”
Every time you purchase “1” stock it increases your hourly income by 525.

Again for example, in two hours I will have 20k and be able to buy “1” stock, bringing my hourly income up to $10,525. After two more hours I will have “32” stock and an hourly income of $11,050.

If you purchase “1” stock every time you have an additional 20k; how long would it take to get to 200? (We are starting at 30 so I guess it would be the additional 170 stock)

I know I can keep adding 525 and figure it out the hard way, but I am curious as to what a formula for a problem like this would look like and how it would work.


I appreciate your time!!!

Want to make sure that I follow your "confusion"

Do you agree that the following happens during hours 9 to 13:

Code:

hour per-hour purchase balance #stocks
  9   12,100            18,400   34
 10   12,100  -20,000   10,500   35
 11   12,625  -20,000    3,125   36
 12   13,150            16,275   36
 13   13,150  -20,000    9,425   37

If that is the correct balance starting at hour 9 then yes I agree. I am able to do what you just did all the way to 200... but is there a formula to describe it?

I make it that the 200 mark is reached after 90 hours...during this 90th hour,
5 stocks are purchased, the hourly rate having reached $97,675!!
Stocks 198 to 202 are purchased, with $11,500 left in the kitty.

I can't right now (too sleepy!) imagine a formula for this.
Perhaps someone else will. Happy 2011 to you.