After 5 years, Hamid's account earned $1500 in interest. If the interest rate (in decimal form) is 0.12, how much did Hamid initially invest?
+36916 The formula is Interest = #years * Rate * Deposit
1500 = .12 * 5 * Deposit
1500/(.12*5) = Deposit =
$2500.00
EP calculated simple interest over a period of 5 years.
If compound interest is used, then you have:
1,500 = M x 1.12^5
1,500 = M x 1.7623416832
M = 1,500 / 1.7623416832
M =851.14 - This is the original amount invested if 12% is compounded annually.
Note: We give you 2 solutions for the price of one!!
+2440 Mr. BB, you made a BooBoo. The question asks for an initial amount that will return $1500 in interest, not future value. You used the future value formula and this gives the accrued amount (principal + interest) as part of the total. The $1500 includes the $851.14 principal, leaving only $648.86 for the interest portion.
The original deposit has to be $1,967.62. I’m sure you know the correct formula for this, so I’ll leave you to it.
I’m surprised; you don’t usually s***w up interest rate questions. Perhaps because it’s a savings account, instead of a bond or an annuity, it threw you off your game. I wasn’t the one who discovered your error—it was my dog, Mr. Peabody. The narrative of how it unfolded is below.
Mr. BB, you might be interested to know I was playing Monopoly with my dog, Mr. Peabody, and cat, DC Copper. We all keep an eye on the forum while we play Monopoly; my cat always looks forward to any post you may make. As I said before, he likes you. I’m still not sure why other than for possible reasons mentioned in previous posts.
Mr. Peabody recently renewed his bank examiners’ license, by attending seminars with former bankers of Smith & Blarney and Wells Fargo. There’s nothing like learning about fraud and embezzlement techniques from those who’ve practiced the theories in the real world.
Your post popped up during the game, and it gleaned interest from both DC and Mr. Peabody. When Mr. Peabody saw your post he said, “He’s either back to crooked banking practices or he’s an idiot." I was very impressed he could discern this just from a glance. Further evaluation would have to wait though, it was DC’s turn to roll.
For this game, Mr. Peabody was the banker and DC was nearly insolvent after landing on Boardwalk (with two hotels), and other properties, two times in five rounds of passing GO. DC had mortgaged all his properties to pay the rent. He was in a bad mood about it, but it got worse when he landed on the Boardwalk again. He had enough cash to pay the rent, except doing so put him below the minimum threshold for solvency and Mr. Peabody called in his loan. (We have our own rules based on early 20th century banking laws and practices). DC had to pay off all his loans the next time he passed GO (or went to jail). Even if Mr. Peabody and I landed on every one of his properties before then, he still couldn’t pay of his loans.
Normally, they only fight after the game is over, but DC was pissed! The only time he was ever more pissed was when we played the game using the Communist: Soviet Union rules. In this game, Mr. Peabody effectively made himself dictator and jailed DC, and fined him every ruble he made, keeping the money for himself for 25 rounds. DC broke jail and started a revolt. Sh*t! If it isn't over thirty years since the end of the Soviet Union Proletariat and still it causes trouble!
What a mess. It took 12 hours to clean it up.
Anyway, this time it wasn’t communism, just a pissed off, bankrupt cat. It took 10 hours to clean up the mess and find the playing pieces.
The playing pieces are unique works of art. DC’s piece is a tiger carved from the fossilized tooth of a saber-toothed tiger. Mr. Peabody’s piece is a wolf carved from part of an elephant tusk. Mine is a chimp carved from a Javan rhinoceros horn, and shellacked. All these pieces are very rare and irreplaceable.
Anyway, Mr. BB, all of this needed tending to before I could comment on your post.
You know, Mr. BB, if you’d care to play, I’ll see if I can get a small sample of the Blarney Stone (Cloch na Blarnan) and have a symbolic banker sculpted in your image. We can play with real money, if you’d care to—we’d need to hire a disinterested banker though. I know my cat, DC Copper, would be thrilled. Maybe I could figure out why he likes you.
Anyway, let me know.
Oh, don’t forget to fix your screwed up solution, and you need to give a refund to the question asker, and file a report with the bank examiners’ review board. There are probably a few other things too, but his is a good start.
GA
Who is the F U C K face who took my points off Ginger’s posts?
Go play with your d i c k if you need something to do! If you don’t have one, go find one to play with!
+2440 Jesus! JB, take a tranquilizer –or ten. We’re trolls; we have to expect retaliation. It means we’re doing our jobs properly. This attack is nothing—only about 50 of me previous posts were negged. The last three times it happened, most all of them were negged.
The net score only dropped three points—a lot of effort for nothing LOL. This is easily fixed.
Thank you for your compliments. Your bifurcated comment method is very cool.
P.S. If you decide to restore the points, only put back what was taken. Don’t inflate any of them.
GA
