# Comopund Interest Advanced Functions Question!!

• Feb 17th 2013, 03:18 PM
elisacor
The experimenter claims that the equation is explained by the formula for compound interest: A = P(1 + i)n. She argues that P represents the number of coins she started with, i is 0.5 since the growth rate is about 50% (since about one-half of the coins tossed come up heads) and n is the number of tosses, which is like the compounding period.
If her hypothesis is correct, create a formula that predicts the total number of coins if an unfair (weighted) coin is used that only comes up heads one out of every four times.

My answer is a=4(1.05)^n that is what I came up with
• Feb 18th 2013, 07:58 AM
elisacor
Re: Comopund Interest Advanced Functions Question!!
can anyone help with this
• Feb 18th 2013, 07:47 PM
ibdutt
Re: Comopund Interest Advanced Functions Question!!
The question does not come under the category of compound interest. You may try it under probability section.
• Feb 18th 2013, 09:09 PM
Paze
Re: Comopund Interest Advanced Functions Question!!
Quote:

Originally Posted by elisacor
The experimenter claims that the equation is explained by the formula for compound interest: A = P(1 + i)n. She argues that P represents the number of coins she started with, i is 0.5 since the growth rate is about 50% (since about one-half of the coins tossed come up heads) and n is the number of tosses, which is like the compounding period.
If her hypothesis is correct, create a formula that predicts the total number of coins if an unfair (weighted) coin is used that only comes up heads one out of every four times.