Interest

amrmiramar

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May 21, 2020
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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

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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:

https://www.freemathhelp.com/forum/threads/read-before-posting.109846/#post-486520

Please share your work/thoughts about this assignment.
 

amrmiramar

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May 21, 2020
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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:

https://www.freemathhelp.com/forum/threads/read-before-posting.109846/#post-486520

Please share your work/thoughts about this assignment.
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

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Oct 29, 2019
Messages
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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?

\(\displaystyle PV=?\)
 

Subhotosh Khan

Super Moderator
Staff member
Joined
Jun 18, 2007
Messages
20,987
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

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Mar 16, 2016
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