Results 1 to 2 of 2

Math Help - questions about interest rates

  1. #1
    Junior Member
    Joined
    Oct 2006
    From
    canada
    Posts
    68

    questions about interest rates

    Hello, could you please help me to solve the following problems?


    How much more interest will be earned if $2,000 is invested for 4 years at 8% compounded continuously, instead?


    How much more interest will be earned if $2,000 is invested for 4 years at 8% compounded continuously, instead of at 8% compounded quarterly?



    A parent wants to have $400,000 available for her child's education. Find the amount that would have to?
    a parent wants to have $400,000 available for her child's education. Find the amount that would have to

    Suppose an individual wants to have $200,000 available for her child's education. Find the amount that would have to be invested at 12%, compounded continuously, if the number of years until college is:
    1 ) 6 years
    2 ) 15 years
    3) Does leaving the money invested twice as long mean that only half as much is needed initially? Explain why or why not.


    please help me, I'm trying to study for the final exam which will take place tomorrow.
    thank you.
    Follow Math Help Forum on Facebook and Google+

  2. #2
    MHF Contributor
    Joined
    Aug 2007
    From
    USA
    Posts
    3,111
    Thanks
    2
    The first is an excellent exploration.

    Try this: 2000*\left(1\;+\;\frac{0.08}{m}\right)^{4*m}

    What is it for m = 1? Annually?
    What is it for m = 2? Semi-Annually?
    What is it for m = 4? Quarterly?
    What is it for m = 12? Monthly?
    What is it for m = 52? Weekly?
    What is it for m = 365? Daily?
    What is it for m = 365*24? Hourly?

    Is there a limit to the values you are getting? Let's remember a little calculus and track it down.
    Follow Math Help Forum on Facebook and Google+

Similar Math Help Forum Discussions

  1. interest rates.
    Posted in the Business Math Forum
    Replies: 6
    Last Post: February 22nd 2011, 01:47 PM
  2. Compound interest at changing interest rates
    Posted in the Business Math Forum
    Replies: 2
    Last Post: October 21st 2010, 05:55 AM
  3. interest rates
    Posted in the Math Topics Forum
    Replies: 4
    Last Post: November 6th 2008, 04:37 AM
  4. interest rates
    Posted in the Business Math Forum
    Replies: 8
    Last Post: August 18th 2006, 05:30 AM
  5. help me please, finding interest rates
    Posted in the Algebra Forum
    Replies: 1
    Last Post: June 8th 2006, 11:58 PM

Search Tags


/mathhelpforum @mathhelpforum