
Economics Economics Forum  Financial Mathematics, Econometrics, Operations Research, Mathematical Finance, Computational Finance 
 LinkBack  Thread Tools  Display Modes 
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 nonlinearly. 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  

Similar Threads  
Thread  Thread Starter  Forum  Replies  Last Post 
Compund Interest  mom1234  Economics  4  June 2nd, 2013 04:40 PM 
Calculate interest rate based on interest in parcels  douglasrac  Economics  0  February 17th, 2011 09:14 AM 
Help with Compund interest problems  Shifty98  Economics  1  September 29th, 2009 07:20 AM 
simple and compund interest help  sharani  Economics  1  October 10th, 2008 02:25 PM 
Compund Interest  mom1234  Abstract Algebra  0  December 31st, 1969 04:00 PM 