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April 21st, 2014, 04:17 PM   #1
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Question 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
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April 24th, 2014, 08:47 AM   #2
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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?
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