Thread: Math Problem
View Single Post
  #4 (permalink)  
Old 08-01-2005, 11:44 AM
gakline gakline is offline
$ Saving HS Senior
 
Join Date: Dec 2004
Location: Naperville, IL
Posts: 331
Points: 6220.70
Donate
Default Re: Math Problem

For Continuous Compounding:
A=Pe^(rt)

where:
P = principal amount (initial investment)
e= Napier's Number ~ 2.7183 (if you have a scientific calculator, it should have it.
r = annual interest rate (as a decimal)
t = number of years
A = amount after time t

In your case t=1 month = 1/12 = 0.08333

The Compound Interest Equation
P = C (1 + r/n) nt
where
P = future value
C = initial deposit
r = interest rate (expressed as a fraction: eg. 0.06)
n = # of times per year interest in compounded
t = number of years invested

Even more Here.
Reply With Quote