you have an investment of 145000.you want to invest it for 199days at a rate of 6.2%. the investment house gives you two options. they inform you that you should choose between simple interest and compound interest, calculate the difference between the 2 options.

Question

anonymous · Answer

Are u supposed to use calculator for these or what?

anonymous · Answer

nilankshi is bored:-)

nilankshi · Answer

how u know

anonymous · Answer

It was hard to guess, being truthful..:-)

anonymous · Answer

Finance?

nilankshi · Answer

damed bored yar

anonymous · Answer

Finance is math really but there are all sorts of weird definitions, u don't know them, gets u in trouble eg 360 or 365 day year, things like that...

anonymous · Answer

I=prt and if i remember right t is in years so you will have a side calculation there is the simple interest formula

anonymous · Answer

simple = flat?

anonymous · Answer

A=p(1+r/n)^rt is compound interest formula, which again has t=time in years. Yes simple whould be flat rate return where as this will pay on previous payments

anonymous · Answer

Sorry the exponent should be nt

anonymous · Answer

formula is RxPxt/100     the othere one is A=P(1+i)N or FV= PV(1+i) powern

anonymous · Answer

Yes, basically the same...

But don't u just use calculator?

anonymous · Answer

I have PV, FV, n etc on my calculator.

anonymous · Answer

Go with whatever your teacher is teaching you but those are the ones i would use