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#1 2013-02-05 16:52:49
- Banon
- Guest
Periodic compound interest
In periodic interest if I know everything except number of compoundings per year,how do I find it?
#2 2013-02-05 19:25:09
- bob bundy
- Moderator
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Re: Periodic compound interest
hi Banon,
I'm assuming you mean 'if I know all the variables except n, how do I work it out?'
http://www.mathsisfun.com/money/compoun … l#periodic
Half way down the page is the formula for this.
Bob
You cannot teach a man anything; you can only help him find it within himself..........Galileo Galilei
#3 2013-02-05 22:03:21
- Banon
- Guest
Re: Periodic compound interest
Sorry,but i couldn't find any formula for n there.There is the formula Fv=Pv(1+r/n)^(nt) but i don't know how to solve that expression for n.
#4 2013-02-05 22:32:33
- bobbym
- Administrator
Online
Re: Periodic compound interest
Hi Banon;
You can not always solve for any variable you want. In this case I do not think you can get n by itself on the left.
In mathematics, you don't understand things. You just get used to them.
Probability is the most important concept in modern science, especially as nobody has the slightest notion what it means.
90% of mathematicians do not understand 90% of currently published mathematics.
#5 2013-02-06 00:26:09
- bob bundy
- Moderator
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Re: Periodic compound interest
hi Banon,
Arhh yes! Good point.
You could solve it graphically like this;
using
http://www.mathsisfun.com/data/function … p;ymax=1.2
I've chosen r = 0.05 and you have to have x instead of n.
You can put y = FV/PV as the second graph and zoom in on the point where the line cuts the curve.
Bob
You cannot teach a man anything; you can only help him find it within himself..........Galileo Galilei