Results 1 to 2 of 2

Math Help - Compound Interest

  1. #1
    Newbie reddy9's Avatar
    Joined
    May 2008
    Posts
    5

    Compound Interest

    I am having trouble coming up with the number for n :

    Lisa will invest some money on July 3, her sixteenth birthday, at 4.5% per year, compunded monthly. How much should she invest if she wants to have $ 10,000 on the November 3 following her eighteenth birthday?

    I have found

    P= 10,000
    i= 0.045/12= 0.00375
    n= ? ( not sure how to get this)

    Thank you for the help
    Follow Math Help Forum on Facebook and Google+

  2. #2
    Newbie
    Joined
    Nov 2006
    Posts
    9
    This formula should do the trick..

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

    where P is the amount she should invest, A=10000, r is the rate, n is the number of times the interest is compounded per year, and t is number of years, here 24+4/12..
    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, 05:55 AM
  2. compound interest
    Posted in the Business Math Forum
    Replies: 11
    Last Post: March 12th 2010, 09:05 AM
  3. Compound Interest
    Posted in the Business Math Forum
    Replies: 4
    Last Post: November 24th 2009, 07:18 PM
  4. Compound interest
    Posted in the Business Math Forum
    Replies: 1
    Last Post: October 31st 2009, 09:14 PM
  5. Compound Interest
    Posted in the Pre-Calculus Forum
    Replies: 6
    Last Post: October 6th 2009, 05:24 AM

Search Tags


/mathhelpforum @mathhelpforum