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#1 2013-02-04 17:52:49

Banon
Guest

Periodic compound interest

In periodic interest if I know everything except number of  compoundings per year,how do I find it?

#2 2013-02-04 20:25:09

bob bundy
Moderator
Registered: 2010-06-20
Posts: 6,393

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

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#3 2013-02-04 23:03:21

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 2013-02-04 23:32:33

bobbym
Administrator
From: Bumpkinland
Registered: 2009-04-12
Posts: 86,676

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.
Of course that result can be rigorously obtained, but who cares?
Combinatorics is Algebra and Algebra is Combinatorics.

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#5 2013-02-05 01:26:09

bob bundy
Moderator
Registered: 2010-06-20
Posts: 6,393

Re: Periodic compound interest

hi Banon,

Arhh yes! Good point.

You could solve it graphically like this;

using

http://www.mathsisfun.com/data/function … 8&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

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