Saturday

April 19, 2014

April 19, 2014

Posted by **nmh** on Friday, July 8, 2011 at 2:54pm.

- value of money -
**Henry**, Saturday, July 9, 2011 at 8:33pmPt = Po(1+r)^n.

r = 12% /12mo = 1%/mo = 0.01 = MPR = Monthly percentage rate expresed as a decimal.

n = 12comp/yr * 2yrs = 24 compounding

periods.

Pt = $6400(1.01)^24 = 8126.30 When

compounded monthly.

Pt = Po(1+r)^n.

r = 12% / 365days = 0.03288% = 0.00032877 = MPR = Daily percentage

rate expressed as a decimal.

n=365 comp/yr * 2yrs = 730 compounding

periods.

Pt = $6400(1.00032877)^730 = 8135.69

When compounded daily.

Difference=8135.69 - 8126.30 = $9.39.

**Related Questions**

Algebra - Compare the future amounts (A) you would have if the money were ...

Math - $ 2631 is deposited into an account for 15 years. Determine the ...

Compound interest - Hello My teacher skipped over this and I have no clue how to...

math - Find the amount that schould be invested now to accumulate following ...

Math - If 3000 dollars is invested in a bank account at an interest rate of 6 ...

Math - Can someone please double check my answers. 1. What pattern does the ...

math - Can someone please double check my answers. 1. What pattern does the ...

Algebra - Compare the future amounts (A) you would have if the money were ...

Compound math - (Future Value) Suppose you invest $8000 into an account that ...

Finance - $2,000 at 12% for 20 years (a) Calculate the future amount if the ...