Melody

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Melody  Feb 11, 2022
 #36
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@@ What is Happening?  [Wrap4]   Sun 22/11/15   Sydney, Australia Time 10:38 pm   ♪ ♫

 

Hi,

Our great answers today were provided by CPhill, Will85237 the Riddler and guests. Thanks you  laugh

 

Interest Posts:

If you ask or answer an interesting question, you can private message the address to me (with copy and paste) and I will include it.  Of course only members are able to do this.  I quite likely will not see it if you do not show me.  

 

1) How do members score points and edit posts?      Thanks for asking Riddler  

http://web2.0calc.com/questions/points_1#r6

 

2)  Riddler invites you to post fun-facts.  Thanks Riddler  

Can you add to the fun facts. ??

http://web2.0calc.com/questions/fun-facts

 

3)  Proof involving sum of squares and prime numbers  NOT ANSWERED.  

http://web2.0calc.com/questions/sum-of-two-square-as-prime

 

4) Mellie questions (repeated) - geometry   Lots of incircles and circumcircles.  Really interesting questions 

I think they have all now been answered by either CPhill or myself.    

 

a) http://web2.0calc.com/questions/a-square-and-an-equilateral-triangle-have-the-same-perimeter-let-abe-the-area-of-the-circle-circumscribed-about-the-square-and-b-be-the-area-of-the-circle

b) http://web2.0calc.com/questions/let-m-be-the-midpoint-of-side-ab-of-triangle-abc-angle-bisector-of-ad-of-angle-cab-and-the-perpendicular-bisector-of-side-ab-meet-at-x-if-ab-40-and-mx-9

c) http://web2.0calc.com/questions/find-the-circumradius-of-triangle-jkl-if-kl-16-and-jk-jl-17

d) http://web2.0calc.com/questions/find-the-inradius-of-triangle-jkl-if-jk-jl-17-and-kl-16

e) http://web2.0calc.com/questions/let-ab-6-bc-8-and-ac-10

 

Enjoy what is left of your weekend :)

 

                                                                 ♪ ♫      Melody    ♪ ♫                                                

Lantern thread:

Nov 22, 2015
 #2
avatar+118724 
+5
Nov 22, 2015
 #2
avatar+118724 
+5

Hi :)

 

Why does A=p(1+(r/n))^nt give me the correct answer when compounding interest annually, weekly, etc, but A=p(r)^nt only works annually?

 

The first formula is what I remember from previous years, and the second is what my book gives me to solve.

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I don't think that the second forumuar is correct, not for compound interest anyway.

Sometimes you see A=p(1+r)^n 

If you take this as meaning r= annual interest rate as a decimal and n is the number of years invested then it is only good for annual investments.  It is often used this way when students are first introduced to compound interest.

----------------------------

Your other formula is just a general purpose formula that can be used for any compounding periods.

 

If you really understand what you are doing then you may just like to use this formula   A=p(1+r)^n 

BUT r must be the rate for the compounding period (not the yearly one) and n must be the number of compounding periods (not tne number of years)   

The number of compounding periods is always going to be the number of years times the number of times interest is added each year which is called  nt in your original formula 

AND

the interest rate is always going to be the number of years divided by the number of times interest is added each year. which is called n/t   in your original formula.

That is how I think of it. 

 

However,

if you are really comfortable with your original formula      p(1+(r/n))^nt       you should probably just keep using it. :)   

 

Does that make sense?

Nov 22, 2015