using this formula, I'm trying to figure out the problem below
Original prob is P(r)=500(1+r)^2
r=0.07 & h=0.01
I want to do this:
So 500(1+(0.07+0.01))^2 / 0.01
but it doesn't come ouut w/the answer in the book. Where am I going wrong? Can you help me step by step? Math is so hard for me to grasp. then they mix up the letters!
Thanks a bunch!