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 October 14th, 2012, 04:23 PM #1 Newbie   Joined: Oct 2012 Posts: 1 Thanks: 0 financial mathematical (foundation level) Determine how long RM5000 must be left to accumulate at 15% p.a. compounded monthly for it to amount to twice the accumulated value of another RM5000 deposited at the same time at 9% p.a. compounded quarterly.
 October 14th, 2012, 06:52 PM #2 Global Moderator     Joined: Nov 2009 From: Northwest Arkansas Posts: 2,766 Thanks: 4 Re: financial mathematical (foundation level) 73 months
October 14th, 2012, 07:35 PM   #3
Math Team

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Re: financial mathematical (foundation level)

Quote:
 Originally Posted by The Chaz 73 months
Betya a Canadian Loonie ($1.0176 USA!) it's in between 138 and 139 months: you on, Chaz?  October 14th, 2012, 08:40 PM #4 Senior Member Joined: Jul 2010 From: St. Augustine, FL., U.S.A.'s oldest city Posts: 12,211 Thanks: 521 Math Focus: Calculus/ODEs Re: financial mathematical (foundation level) You want to solve: $5000$$1+\frac{0.15}{12}$$^{12t}=2\cdot5000$$1+\fra c{0.09}{4}$$^{4t}$ for t, in years. Do you see why? I got: $t=\frac{\ln(2)}{4$$3\ln\(\frac{81}{80}$$-\ln$$\frac{409}{400}$$\)}\approx11.5394126569$  October 15th, 2012, 01:36 AM #5 Math Team Joined: Oct 2011 From: Ottawa Ontario, Canada Posts: 14,597 Thanks: 1038 Re: financial mathematical (foundation level) Agree. Another way is convert the quarterly rate to its equivalent monthly rate: r = (1 + .09/4)^(1/3) - 1 = .0074444427.... (1 + .15/12)^n = 2(1 + r)^n n = LOG(2) / LOG[(1 + .15/12) / (1 + r)] = 138.472951883... months October 15th, 2012, 01:59 AM #6 Global Moderator Joined: Nov 2009 From: Northwest Arkansas Posts: 2,766 Thanks: 4 Re: financial mathematical (foundation level) Quote: Originally Posted by Denis Quote:  Originally Posted by The Chaz 73 months Betya a Canadian Loonie ($1.0176 USA!) it's in between 138 and 139 months: you on, Chaz?
I should have made the amount more obviously absurd. I lose no sleep from spoon feeding wrong answers to people who can't be bothered to show work

 October 15th, 2012, 06:02 AM #7 Math Team   Joined: Oct 2011 From: Ottawa Ontario, Canada Posts: 14,597 Thanks: 1038 Re: financial mathematical (foundation level) Good point!

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