Purchase Solution

Compound Interest

Not what you're looking for?

Ask Custom Question

1. Calculate the return (A) if the bank compounds daily (n = 365). Round the answer. using this formula:
A=P(1+r/n)^ nt

2. If a bank compounds continuously, then the formula takes a simpler, that is A= P e(n)squared where e is a constant and equals approximately 2.7183. Calculate A with continuous compounding

Purchase this Solution

Solution Summary

Answers questions on Compound Interest

Solution Preview

You have not indicated the principal, rate of interest and time
Let ...

Purchase this Solution


Free BrainMass Quizzes
Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.

Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)