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**vatso****Member**- Registered: 2013-02-19
- Posts: 5

1) What is the accumulated value of $150 invested for three years and three months when the rate of interest is 0.5% per month? The right answer is $182.21. How to you get to that figure?

2) $100 invested for two years at an interest rate of 2% per quarter. What is the difference between the compound and simple interest earned on this investment? The correct answer is $1.17. How you get this value?

3) What is the future value of £100 invested at 1% per month for five years? The correct answer is $181.67. How do you get that value?

Again, thank you in advance!!!!

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**bobbym****Administrator**- From: Bumpkinland
- Registered: 2009-04-12
- Posts: 100,387

Hi vatso;

Simplest way is to form the recurrence

with a(0) = 150. Then you just run the recurrence forward for 39 months. Answer is 182.20809 which when rounded is 182.21

From the recurrence you can also get a formula:

Question 3) is done the same way.

*Last edited by bobbym (2013-02-19 15:34:31)*

**In mathematics, you don't understand things. You just get used to them.****If it ain't broke, fix it until it is.** **Thinking is cheating.**

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**vatso****Member**- Registered: 2013-02-19
- Posts: 5

Thank you Bobbym!!!!!! Really appreciated it!!!

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**bobbym****Administrator**- From: Bumpkinland
- Registered: 2009-04-12
- Posts: 100,387

Hi vatso;

You are welcome and welcome to the forum.

**In mathematics, you don't understand things. You just get used to them.****If it ain't broke, fix it until it is.** **Thinking is cheating.**

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