I am working on interest questions and there are a few I cannot figure out.
1) Calculate the present value of each investment, given the final value of the investment.
b) $10 775.64 after 50 years at 8% compounded monthly.
2) John loans $6000 to his sister, Sally. Sally agrees to pay him back 7 years later at a rate of 8% compounded weekly. How much interest does Sally have to pay.
3) An investment grows from $600 to $1200 in 9 years. If interest was compounded monthly, what was the annual rate?
I know I have to use the formula:
but where did you get the r from?
Originally Posted by Reckoner
Reckoner used a different formula then your PV= A/(1+i)^n that contains r.
but would my teacher approve of it?
Originally Posted by Jonboy
I'm not for sure. I've never seen your formula before, but I've not done too many problems of this sort. Can you explain what everything means in your formula so we can show you how to use it with this problem?
Originally Posted by VDestinV
PV= present value
A= final amount
i is the interest rate
n is the number of compounding periods