# Interest

#### amrmiramar

##### New member
I need help with this

How much will $1000 accumulate to in 8 years if it earns 12 % p.a. effective for 6 years and 9 % p.a. effective for 2 years #### Subhotosh Khan ##### Super Moderator Staff member I need help with this How much will$ 1000 accumulate to in 8 years if it earns 12 % p.a. effective for 6 years and 9 % p.a. effective for 2 years
Is that first 6 years or last 6 years? Similarly:

Is that first 2years or last 2 years?

Please show us what you have tried and exactly where you are stuck.

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

• amrmiramar

#### amrmiramar

##### New member
Is that first 6 years or last 6 years? Similarly:

Is that first 2years or last 2 years?

Please show us what you have tried and exactly where you are stuck.

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

Sorry dude but that what the lecturer asked us to do
that's the whole question
completely no clue about how to solve it i couldn't attend any lecture due to corona
if there's any shady in that question can u help me solving this as we can chose between them

Calculate the present value of $1000 due in 1 year (a) at a simple interest rate of 10 % p.a., (b) at a simple discount rate of 10 % p.a. ty for ur time #### firemath ##### Full Member Sorry dude but that what the lecturer asked us to do that's the whole question completely no clue about how to solve it i couldn't attend any lecture due to corona if there's any shady in that question can u help me solving this as we can chose between them Calculate the present value of$1000 due in 1 year
(a) at a simple interest rate of 10 % p.a.,
(b) at a simple discount rate of 10 % p.a.

ty for ur time
Well, this one is easier, so you might try it instead.

Try (a) first:

Here, we're asked to compute present value, or $$\displaystyle PV$$.

$$\displaystyle PV=\frac{C}{(1+r)^n}$$

$$\displaystyle PV=\frac{1000}{(1+0.10)^1}$$

$$\displaystyle PV=\frac{1000}{1.10}$$

Now can you calculate the end of the formula, which equals the future PV?

$$\displaystyle PV=?$$

• amrmiramar

#### Subhotosh Khan

##### Super Moderator
Staff member
Sorry dude but that what the lecturer asked us to do
that's the whole question
completely no clue about how to solve it i couldn't attend any lecture due to corona
if there's any shady in that question can u help me solving this as we can chose between them

Calculate the present value of \$1000 due in 1 year
(a) at a simple interest rate of 10 % p.a.,
(b) at a simple discount rate of 10 % p.a.

ty for ur time
Please tell us the difference between:

simple interest rate, and​
simple discount rate​

#### Harry_the_cat

##### Senior Member
Is that first 6 years or last 6 years? Similarly:

Is that first 2years or last 2 years?
It doesn't matter does it?