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Math Help - Word Problem using compound

  1. #1
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    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!!!
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  2. #2
    MHF Contributor
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    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
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  3. #3
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    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?
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  4. #4
    MHF Contributor
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    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.
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