My Math Forum Compund interest question

 Economics Economics Forum - Financial Mathematics, Econometrics, Operations Research, Mathematical Finance, Computational Finance

 April 21st, 2014, 04:17 PM #1 Newbie   Joined: Apr 2014 From: Mexico Posts: 1 Thanks: 0 Compund interest question Hello, I have never posted a question in a forum so I will try my best. I am having some trouble with the following question which I hope is understandable: Find the interest rate of a function such that the sum of returns during 12 periods is equal to 21929? Present value = 1. To give you some context, my sales assumptions tell me I will sell a total of 21,929 bottles of beer during the first year of operations. I would like to graph this non-linearly. I originally thought it was just a future value problem where I needed to solve for the interest rate using a present value of 1 and a future value of 21,929. I then realized that solving it that way just made it so that my sales in month 12, rather than the sum of sales during the year, were 21,929. Would appreciate any help I could get on, 1, the answer, and most importantly,2, how you got the answer. Thank you in advance
 April 24th, 2014, 08:47 AM #2 Math Team   Joined: Oct 2011 From: Ottawa Ontario, Canada Posts: 14,415 Thanks: 1025 Can't see how compound interest can help here. Like, \$1 earning 130% monthly is required to reach ~21929 after 12 months! Plus: why 21929? You're estimating, so why not use say 22000? Can you clarify what you're asking?

 Tags compund, interest, question

 Thread Tools Display Modes Linear Mode

 Similar Threads Thread Thread Starter Forum Replies Last Post mom1234 Economics 4 June 2nd, 2013 04:40 PM douglasrac Economics 0 February 17th, 2011 09:14 AM Shifty98 Economics 1 September 29th, 2009 07:20 AM sharani Economics 1 October 10th, 2008 02:25 PM mom1234 Abstract Algebra 0 December 31st, 1969 04:00 PM

 Contact - Home - Forums - Cryptocurrency Forum - Top