Calculating Income: futures contract costs $8K; need $500/wk

[BrandonLG83]

Hi, I posted this in the calculus forum a week or so ago but got no response so I'll try again here. I'm trying to find a formula to help me project returns from trading and investing based on the following example:

A futures contract costs $8000. For every futures contract I have, I can make 500 per week. I roll all of my profits back into my account at the end of each week. How long will it take me to make $10,000 per week? My initial investment is $8000. Think of a futures contract as a share of stock if that helps.

Thanks in advance!

Brandon

 

[Deleted member 4993]

Re: Calculating Returns

Hi, I posted this in the calculus forum a week or so ago but got no response so I'll try again here. I'm trying to find a formula to help me project returns from trading and investing based on the following example:

A futures contract costs $8000. For every futures contract I have, I can make 500 per week. I roll all of my profits back into my account at the end of each week. How long will it take me to make $10,000 per week? My initial investment is $8000. Think of a futures contract as a share of stock if that helps.

Thanks in advance!

Brandon

Please show us your work - indicating exactly where you are stuck, so that we know where to begin to help you.

 

[stapel]

A futures contract costs $8000. For every futures contract I have, I can make 500 per week. I roll all of my profits back into my account at the end of each week. How long will it take me to make $10,000 per week? My initial investment is $8000.

When you reply with your work so far, please include any necessary assumptions. For instance, are you supposed to assume, for simplicity, that a year has exactly fifty-two weeks? Are you supposed to use the Banker's Rule? Etc.

Thank you!

Eliz.

 

[Denis]

Hi, I posted this in the calculus forum a week or so ago but got no response so I'll try again here. I'm trying to find a formula to help me project returns from trading and investing based on the following example:

A futures contract costs $8000. For every futures contract I have, I can make 500 per week. I roll all of my profits back into my account at the end of each week. How long will it take me to make $10,000 per week? My initial investment is $8000. Think of a futures contract as a share of stock if that helps.

After rolling back the 1st 500, you have 8500: do you get 531.25 in week#2?
Or do you get 500 per week until the 8000 becomes 16000, then 1000 per week?