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An economy is making a rapid recovery from steep recession, and business foresee a need for large amount of capital investment. why would this development affect real interest rates?

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Try the FV function Syntax
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SOURCE: solving word problems involving linear equation

A positive number is 5 times another number.If 21 is added to both the numbers,then one of the new numbers becomes twice the other number.What are the numbers

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SOURCE: On the Sharp EL-738 calculator,

Hi,

Jane starts with 1200$ at the beginning of the first year, and at the end of the fourth year she has 1200$+300$=1500$
Use x for her annual interest rate, that means at the end of the first year she will have 1200$*[(100+x)/100]. At the end of the second year her first-year money earns at the same rate, so she will have 1200$*[(100+x)/100]*[(100+x)/100]=1200$*[(100+x)/100]^2 at the end of the second year.
At the end of the third year she will have 1200$*[(100+x)/100]^2 *[(100+x)/100]=1200$*[(100+x)/100]^3
At the end of the fourth year she will have
1200$*[(100+x)/100]^3 *[(100+x)/100]=1200$*[(100+x)/100]^4 which is equals to 1500$

1200$*[(100+x)/100]^4=1500$ divide both sides by 1200$
[(100+x)/100]^4=1,25 take the fourth root of both sides
(100+x)/100=1,05737 both sides*100
100+x = 105,737 both sides -100
x=5,737
So Jane's annaual interest rate was 5,737%.

Hope it helps you.

Posted on Mar 15, 2011

Donateli
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SOURCE: 8000 invested at 12% single

Single interest is calculated on the 'original principle amount' only. Accumulated interest from prior periods is not used in calculations for the following periods.
Simple Interest = p * i * n
Where p = original principal amount (i.e. the amount that was borrowed, loaned, invested) i = interest rage for one period n = the number of periods
so in your example p = 8000 i = 12% (12/100 = 0.12) n = 2
=> simple interest = 8000 * .12 * 2 = 1920 => amount after 2 years = amount invested + simple interest = 8000+1920 = 9920
I hope this helps and good luck! If you have more questions - ask away!
Don.

Posted on Sep 08, 2011

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annagunnerma
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SOURCE: What are the benefits of investing in Facebook

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Posted on Aug 02, 2013

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