Question

Len invests $5200 at 3% simple interest while his friend Dave invests $3600 at 5% simple interest. How long will it take for Dave's investments to be worth more than Len's

Answer 1

Is this the simple interest formula?

A = P(1 + r/n)^(nt)

Answer 2

nooo that is compoundint but i actually realized my error it was a stupid one uughhhhhh

Answer 3

its A=P(1+rt)

Answer 4

i always sucked at these...
thanks for the formula :)

Answer 5

hahahha i suck at everything. Like i went wrong when i was teaching my class uuughhhh. Today is my bad day

Answer 6

can I ask...
what's the difference in compound and simple?

Answer 7

Simple interest:
If you borrowed money for 10 years the every year you have to pay interest / a percenatge but on the original amt u borrowed.
Compounding interest:
Lets say you invest money in a bank. Every year you get interest but on that amt that you have in your bank at the moment.
So for instance the second year you will be getting interest on the original amt+ last years interest
So like your interest isnt growing linearly but exponentially

Answer 8

so basically compounding is a buildup you get interest on the amt u have in the bank at teh moment not ur original amt that you put in originally. And this amt of money is continually growing every year since you are getting interest every yr

Answer 9

hahah i wonder if i confused you. Like most books explain this concepts using spreadsheets

Answer 10

very interesting!!! thanks for explaining... you're one great teacher!!!
i'm glad i don't manage mine or anyone elses' money... :)

Answer 11

hahah u didnt get it lol

Answer 12

http://www.mathsisfun.com/money/compound-interest.html

Answer 13

no... i did....

Answer 14

i'm trying to do more of these type of problems... you know what they say... face your fears head on.

Answer 15

lol hahahah what level of math r u in?