Question

What is the principal balance if the principal plus interest at the end of 1.5 years is $3,360 at an annual interest rate of 8%?

Answer 1

3360 = P(1.08)^1.5

Answer 2

P = 3360/(1.08)^1.5

Answer 3

it depends how often they pay interest

Answer 4

time is still time right?

Answer 5

2993.67 or so

Answer 6

yep but if they pay at the end of 1st year and at the end of the second half year than ti will be x*1.008*1.004

Answer 7

spose it starts in .5 and goes thru the next year? :)

Answer 8

1 less 0 :D

Answer 9

i think the .5 part of the time span takes that into account

Answer 10

100(1.1)^.5 =?

Answer 11

104.88

Answer 12

so that accounts for 1/2 the year as opposed to the ful 10%

Answer 13

it is just 8%

Answer 14

not in my easier example for testing lol

Answer 15

ohh, sorry :)

Answer 16

100 at 10% for half a year

Answer 17

shouldnt it be 105?