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Melody

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यूजर का नामMelody
स्कोर118691
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Melody  11 Feb 2022
 #68
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[quote="Random260"]

As you can see the rate is now changed to 3 since that is the compounding period. Please tell me if this is right or wrong.
It is not the rate that you have changed to 3, it is the number of times that interest is added each year that you have changed to 3
(and this is correct)
Your new attempt at entire answers is not correct.
I want to look at the answers that I actually asked for - Thank you for anwering them properly.
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(a) Philip inherited $170,000. He invested it in a term deposit which earned 6.6% p.a. compounding every 4 months
How much did it grow to after 5 years?
(b) If you can do this one maybe you could tell me how much it would grow to after 6 years
(c) How much will it grow after 1/3 years.
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Answer for all three of the above questions seperately. Don't worry about anything else. Just answer these questions properly.

1.What is the annual rate of interest for a? b ? c?
2.how long is the compounding period. That is how often is the interest added. a? b? c?
3.for each of them, how many times per year is the interest added a? b ? c?
4.What is the interest rate for each compounding period a? b? c? (This is r)


1a) 0.066
2a) (3x5) = 15
3a) 12/4 = 3
4a) 0.066/3 = 0.022

1b) 0.066
2b) (3x6) = 18
3b) 12/4 = 3
4b) 0.066/3

1c) 0.066
2c) (1/3x12) x 3
3c) 12/4 = 3
4c) r= 0.066/3
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Question 1, 3 and 4 are perfect, (except I want r= in front of 4a and 4b)
Q2 is not correct.
2.how long is the compounding period. That is how often is the interest added. a? b? c?
This is becauses you have a real problem interpreting words. You need to work on this.
The question is, [size=150]How often is the interest added?[/size]
See if you can work out what I want by yourself.
Add the r=s
re-submit this answer.

NOW, if you feel really confident that your Q2 is correct this time then I want you to try and write IN WORDS what you have discovered, what is the relevance of these answers,
why did I ask them? (You really need to practice writing and interpreting words)
7 Jan 2014
 #66
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Random260:

r= is the rate it is compounded (A better answer would be) r is the rate for each compounding period
n= the number of compounding interest. How many times it is compounded n= the number of compounding interest. How many times it is compounded


n= the number of compounding PERIODS. How many times it is compounded: n has got nothing to do with the amount of interest being charged.

Okay, that is much better, you answered the questions that I asked you to answer! I've just adjusted your answers a little
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DON'T answer a b and c again. My new questions are in blue.

(a) Philip inherited $170,000. He invested it in a term deposit which earned 6.6% p.a. compounding every 4 months
How much did it grow to after 5 years?
(b) If you can do this one maybe you could tell me how much it would grow to after 6 years
(c) How much will it grow after 1/3 years.
----------------------------------------------------------------------------------------------------
Answer for all three of the above questions seperately. Don't worry about anything else. Just answer these questions properly.

1.What is the annual rate of interest for a? b ? c?
2.how long is the compounding period. That is how often is the interest added. a? b? c?
3.for each of them, how many times per year is the interest added a? b ? c?
4.What is the interest rate for each compounding period a? b? c? (This is r)

So I have asked 4 questions and each question must have 3 answers.

You will get them right if you just THINK first.
6 Jan 2014