- Joined
- Apr 20, 2010
- Messages
- 736
- Reaction score
- 16
so the formula is:
If you invest $1000, annual interest rate of [FONT=MathJax_Main]6.[FONT=MathJax_Main]%. compounded monthly for 5 years.
[FONT=MathJax_Math]P.[FONT=MathJax_Main]=.[FONT=MathJax_Main]1000.[FONT=MathJax_Main], .[FONT=MathJax_Math]r.[FONT=MathJax_Main]=.[FONT=MathJax_Main]0.06.[FONT=MathJax_Main],.[FONT=MathJax_Math]n.[FONT=MathJax_Main]=.[FONT=MathJax_Main]12. and [FONT=MathJax_Math]t.[FONT=MathJax_Main]=.[FONT=MathJax_Main]5.
ok so i get this
the next problem says:
If you invest $1000, annual interest rate of [FONT=MathJax_Main]4.[FONT=MathJax_Main]%. compounded twice a month for 10 years.
DATQvault says n=6.
Why is n=6 when the problem says "compounded twice a month"
shouldn't it be 12 ?
[FONT=MathJax_Math]A.[FONT=MathJax_Main]=.[FONT=MathJax_Math]P.[FONT=MathJax_Size1](.[FONT=MathJax_Main]1.[FONT=MathJax_Main]+.[FONT=MathJax_Math]r.[FONT=MathJax_Math]n.[FONT=MathJax_Size1]).[FONT=MathJax_Math]n.[FONT=MathJax_Math]t.[FONT=MathJax_Main].
If you invest $1000, annual interest rate of [FONT=MathJax_Main]6.[FONT=MathJax_Main]%. compounded monthly for 5 years.
[FONT=MathJax_Math]P.[FONT=MathJax_Main]=.[FONT=MathJax_Main]1000.[FONT=MathJax_Main], .[FONT=MathJax_Math]r.[FONT=MathJax_Main]=.[FONT=MathJax_Main]0.06.[FONT=MathJax_Main],.[FONT=MathJax_Math]n.[FONT=MathJax_Main]=.[FONT=MathJax_Main]12. and [FONT=MathJax_Math]t.[FONT=MathJax_Main]=.[FONT=MathJax_Main]5.
ok so i get this
the next problem says:
If you invest $1000, annual interest rate of [FONT=MathJax_Main]4.[FONT=MathJax_Main]%. compounded twice a month for 10 years.
DATQvault says n=6.
Why is n=6 when the problem says "compounded twice a month"
shouldn't it be 12 ?