Results 1 to 4 of 4

Math Help - Compound interest.

  1. #1
    Newbie
    Joined
    Dec 2011
    Posts
    1

    Compound interest.

    here is the question

    Harry and Potter both would want to have RM 5000, each, to buy a motorcycle. Harry makes a deposit of RM 750 at an interest rate of 4% compounded monthly. If the time taken by both is the same, calculate the annual interest rate charged to Potter if he deposited RM 450 compounded quarterly.

    please answer it thanks!
    Last edited by mr fantastic; December 20th 2011 at 03:44 PM. Reason: Re-titled.
    Follow Math Help Forum on Facebook and Google+

  2. #2
    MHF Contributor
    Joined
    May 2010
    Posts
    1,030
    Thanks
    28

    Re: Compound interest.

    where are you stuck?

    start by working out how long it takes harry to get RM 5000.
    Follow Math Help Forum on Facebook and Google+

  3. #3
    Member
    Joined
    Mar 2010
    From
    Mumbai
    Posts
    91
    Thanks
    2

    Re: Compound interest.

    First you will have to find the term, you can find this using the data given for Harry.
    Then taking that term into context for Potter and find interest rate correspondingly.
    Follow Math Help Forum on Facebook and Google+

  4. #4
    -1
    e^(i*pi)'s Avatar
    Joined
    Feb 2009
    From
    West Midlands, England
    Posts
    3,053
    Thanks
    1

    Re: Compound interest.

    Quote Originally Posted by jusween View Post
    here is the question

    Harry and Potter both would want to have RM 5000, each, to buy a motorcycle. Harry makes a deposit of RM 750 at an interest rate of 4% compounded monthly. If the time taken by both is the same, calculate the annual interest rate charged to Potter if he deposited RM 450 compounded quarterly.

    please answer it thanks!
    The compound interest formula is A = P\left(1+\dfrac{r}{n}\right)^{nt}

    Where,

    A = final amount
    P = principal amount (initial investment)
    r = annual nominal interest rate (as a decimal)
    n = number of times the interest is compounded per year
    t = number of years


    Get an equation for each one, set the time equal and solve for r_2
    Follow Math Help Forum on Facebook and Google+

Similar Math Help Forum Discussions

  1. Compound interest at changing interest rates
    Posted in the Business Math Forum
    Replies: 2
    Last Post: October 21st 2010, 04:55 AM
  2. compound interest
    Posted in the Business Math Forum
    Replies: 11
    Last Post: March 12th 2010, 08:05 AM
  3. compound interest
    Posted in the Algebra Forum
    Replies: 2
    Last Post: April 26th 2009, 10:05 PM
  4. Compound interest
    Posted in the Pre-Calculus Forum
    Replies: 10
    Last Post: December 17th 2008, 10:36 AM
  5. Compound Interest
    Posted in the Pre-Calculus Forum
    Replies: 3
    Last Post: August 11th 2008, 09:04 PM

Search Tags


/mathhelpforum @mathhelpforum