compound interest formula ??

This forum made possible through the generous support of SDN members, donors, and sponsors. Thank you.

Kobebucsfan

Full Member
10+ Year Member
Joined
Apr 20, 2010
Messages
736
Reaction score
16
so the formula is:

[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 ?
 
Top