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- Thread starter Equaliser
- Start date

- Joined
- Jun 18, 2007

- Messages
- 25,875

Do you know the Compound interest formula?

Please show us what you have tried and

Please follow the rules of posting in this forum, as enunciated at:

Please share your work/thoughts about this problem.

- Joined
- Jun 18, 2007

- Messages
- 25,875

Please share your work - a picture of your will be great.I have managed to convert the APR into effective monthly rate and got 0,83%, using the compound interest formula I get result of t = 0,635 (approximately) I am unsure of how to interpret that result.

We will help you with the interpretation after we digest your answer. Please tell us the equations that you have used to arrive at the solution.

What is the unit of 't'? months? weeks? days?

- Joined
- Jun 18, 2007

- Messages
- 25,875

your expression for compounded value is correct for 1 payment. However this is a problem with multiple payment - like annuity or mortgage. What formula have been taught regarding annuities or mortgage payment.I just used the compound interest formula you mentioned and because I am not that good with logarithms I used wolfram alpha to calculate the rest

Those formulas are based on compound interest formula.

Furthermore, your interest factor is wrong. It is not [imath]\dfrac{10}{12} \approx 0.83[/imath].

It should be [imath]\dfrac{10 \div 100}{12} \approx 0.083[/imath].

I also point out that the problem misdescribes how a reverse mortgage works.

See https://reversemortgageguides.org/l...tgage&utm_content=All Terms - For Sorting TBD

It should be [imath]\dfrac{10 \div 100}{12} \approx 0.083[/imath].

I also point out that the problem misdescribes how a reverse mortgage works.

See https://reversemortgageguides.org/l...tgage&utm_content=All Terms - For Sorting TBD

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