Interest

[amrmiramar]

I need help with this

How much will $ 1000 accumulate to in 8 years if it earns 12 % p.a. effective for 6 years and 9 % p.a. effective for 2 years

 

[Deleted member 4993]

I need help with this

How much will $ 1000 accumulate to in 8 years if it earns 12 % p.a. effective for 6 years and 9 % p.a. effective for 2 years

Is that first 6 years or last 6 years? Similarly:

Is that first 2years or last 2 years?

Please show us what you have tried and exactly where you are stuck.

Please follow the rules of posting in this forum, as enunciated at:

https://www.freemathhelp.com/forum/threads/read-before-posting.109846/#post-486520

Please share your work/thoughts about this assignment.

 

[amrmiramar]

Is that first 6 years or last 6 years? Similarly:

Is that first 2years or last 2 years?

Please show us what you have tried and exactly where you are stuck.

Please follow the rules of posting in this forum, as enunciated at:

https://www.freemathhelp.com/forum/threads/read-before-posting.109846/#post-486520

Please share your work/thoughts about this assignment.

Sorry dude but that what the lecturer asked us to do
that's the whole question
completely no clue about how to solve it i couldn't attend any lecture due to corona
if there's any shady in that question can u help me solving this as we can chose between them

Calculate the present value of $1000 due in 1 year
(a) at a simple interest rate of 10 % p.a.,
(b) at a simple discount rate of 10 % p.a.

ty for ur time

 

[firemath]

Sorry dude but that what the lecturer asked us to do
that's the whole question
completely no clue about how to solve it i couldn't attend any lecture due to corona
if there's any shady in that question can u help me solving this as we can chose between them

Calculate the present value of $1000 due in 1 year
(a) at a simple interest rate of 10 % p.a.,
(b) at a simple discount rate of 10 % p.a.

ty for ur time

Well, this one is easier, so you might try it instead.

Try (a) first:

Here, we're asked to compute present value, or [MATH]PV[/MATH].

[MATH]PV=\frac{C}{(1+r)^n}[/MATH]
[MATH]PV=\frac{1000}{(1+0.10)^1}[/MATH]
[MATH]PV=\frac{1000}{1.10}[/MATH]
Now can you calculate the end of the formula, which equals the future PV?

[MATH]PV=?[/MATH]

 

[Deleted member 4993]

Sorry dude but that what the lecturer asked us to do
that's the whole question
completely no clue about how to solve it i couldn't attend any lecture due to corona
if there's any shady in that question can u help me solving this as we can chose between them

Calculate the present value of $1000 due in 1 year
(a) at a simple interest rate of 10 % p.a.,
(b) at a simple discount rate of 10 % p.a.

ty for ur time

Please tell us the difference between:

simple interest rate, and​

​

simple discount rate​

 

[Harry_the_cat]

Is that first 6 years or last 6 years? Similarly:

Is that first 2years or last 2 years?

It doesn't matter does it?