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Math Help - interest due

  1. #1
    rcs
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    interest due

    How much interest is due on $3500 at 6^(3/4) % for nine months?

    can anybody manipulate 6^ 3/4 % how is that possible?
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  2. #2
    MHF Contributor MarkFL's Avatar
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    Re: interest due

    Is the given rate per annum, and how often is it compounded?
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  3. #3
    rcs
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    Re: interest due

    Quote Originally Posted by MarkFL2 View Post
    Is the given rate per annum, and how often is it compounded?
    it is said that the interest due is 177.19 ... i only would like to know how it was being done.. thanks
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  4. #4
    MHF Contributor MarkFL's Avatar
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    Re: interest due

    I would guess the interest rate is 6\frac{3}{4}% and is compounded semi-annually.
    Last edited by MarkFL; September 15th 2012 at 06:12 AM.
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    rcs
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    Re: interest due

    where did you get 6.384% ?
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  6. #6
    MHF Contributor MarkFL's Avatar
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    Re: interest due

    I misread your amount of interest...

    To compute the amount of interest due, use:

    I=P\left(\left(1+\frac{r}{n} \right)^{nt}-1 \right)

    where:

    P = principal

    r = annual interest rate

    n = number of compounding periods per year

    t = number of years
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  7. #7
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    Re: interest due

    3500 * .0675 * 9/12 = 177.1875

    So that's simple interest. No need for anything else.
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