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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
Administrator
Registered: 2010-06-20
Posts: 10,052

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


Children are not defined by school ...........The Fonz
You cannot teach a man anything;  you can only help him find it within himself..........Galileo Galilei
Sometimes I deliberately make mistakes, just to test you!  …………….Bob smile

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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
bumpkin
From: Bumpkinland
Registered: 2009-04-12
Posts: 109,606

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.
If it ain't broke, fix it until it is.
Always satisfy the Prime Directive of getting the right answer above all else.

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

Bob
Administrator
Registered: 2010-06-20
Posts: 10,052

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


Children are not defined by school ...........The Fonz
You cannot teach a man anything;  you can only help him find it within himself..........Galileo Galilei
Sometimes I deliberately make mistakes, just to test you!  …………….Bob smile

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